How much is my practice worth? How healthcare practices are valued in Canada

There's no single price tag for a healthcare practice. Two clinics with identical revenue can sell for very different amounts depending on how profitable they are, how much they depend on the owner, where they're located and who's buying. Here's how buyers think about value, and what you can do about it.

The two numbers buyers look at

Most valuations start with one of two measures. Private buyers and brokers often talk about value as a percentage of annual revenue (gross collections). Corporate buyers, such as dental service organizations (DSOs) and veterinary or clinic consolidators, almost always price on a multiple of normalized EBITDA.

The difference matters. An owner who pays themselves through dividends and runs personal expenses through the corporation may look far less profitable on paper than they really are. Normalizing your financials is often the single most valuable thing you can do before going to market.

Typical ranges by practice type

For context: dentalcorp, one of Canada's largest dental groups, disclosed paying roughly 6.3× to 7.5× adjusted EBITDA (after rent) for the practices it acquired in 2025. Solo family physician practices are a special case. Personal goodwill tied to one doctor is hard to transfer, so value usually lies in tangible assets, the premises and an orderly patient transition.

What moves the number

• Profitability. Overhead under roughly 60–65% of revenue (excluding owner compensation) is a strong signal for most practice types.
• Owner dependence. The less of the revenue you personally produce, the more a buyer will pay. Associates who produce independently are a major value driver.
• Recurring revenue. A strong hygiene department in dentistry, wellness plans in veterinary, memberships in aesthetics and recall systems everywhere.
• Growth. Three years of stable or rising revenue is worth more than one great year.
• Premises. A long, assignable lease (five or more years including renewals) or owned real estate supports both value and buyer financing.
• Location and demand. Major metros and university cities tend to attract more buyers and sell faster.
• Equipment and technology. Buyers will discount for anything that needs replacing in the next couple of years.

Headline price isn't what you take home

Corporate offers frequently pay only part of the price in cash at closing (often somewhere around 60–85%) with the rest in rollover equity, earn-outs or deferred payments, and typically require you to keep working for several years. A lower all-cash offer from a private buyer can sometimes leave you better off. Comparing offers on an apples-to-apples basis is essential.