PRACTICE SALES GUIDE · Published November 3, 2026

Chiropractic Practice Valuation: What's My Chiropractic Practice Worth?

"What's my chiropractic practice worth?" is one of the first questions doctors ask when they start thinking about retirement, a move, or bringing in an associate. The short version: your practice is worth what a qualified buyer can pay and a lender can finance, based on cash flow you can document.

This guide walks through the SDE and multiple method, how accounts receivable get added on, and exactly which P&Ls to pull. For brokers and advisors who do this work, see our practice sales and transitions category and our guide to the best chiropractic practice brokers.

What SDE means and why it matters

Seller's discretionary earnings is the total cash benefit the practice provides to one owner-doctor. It's your net profit with the owner's salary and personal or one-time expenses added back.

Your Automated Practice describes SDE as EBITDA plus the owner's compensation and personal benefits, and says it's the more common framing for smaller owner-operated practices, which it defines as typically under $500K in annual collections. Larger practices are more often valued on EBITDA.

Lenders look at the same numbers from a different angle. US Medical Funding notes lenders ask what the true earnings are after paying a market salary to the doctor providing care, whether add-backs are documented, and whether tax returns, bank deposits, and practice reports reconcile.

The multiple method: what the sources say

Once you have SDE, you multiply it by a market multiple. Here's what published sources report. They measure different things, so they don't line up exactly.

None of these are brokers on our list; they're third-party valuation, research, and consulting sources. Fulkerson's figures are asking prices from 119 listings, and asking prices usually come in above final sale prices. Brokers such as Progressive Practice Sales don't publish one multiple; they say lenders set a permissible range and your practice's risk factors set where you land in it.

What pushes you toward the top or bottom of a range? US Medical Funding lists factors that can raise value: consistent or growing collections, steady new patients from several sources, associates who already treat a meaningful share of visits, clean records, a mix of insured, cash, and membership revenue, and a lease with assignment rights. Factors that can lower value include heavy dependence on the selling doctor, revenue concentrated in one payer or referral source, large personal injury receivables, and declining visits.

The A/R add-on

Accounts receivable are money owed for care you've already delivered. They're usually handled separately from the goodwill price.

Practice Brokers Inc. breaks practice value into four components: goodwill, equipment, accounts receivable, and real estate. For A/R, it says factors include historical collection rate, time value of money, cost of collections, risk, account type (such as work comp, PI, cash, or Medicare), and the age of each account, and that it builds a custom discount chart for each practice.

NDP Transitions explains that A/R is rarely included in the overall practice price and is calculated separately, with each age bucket assigned a percentage based on how likely it is to be collected. It notes current balances (0–30 days) may be worth 95% or more, while balances 90 or 120 days old may be worth as little as 25% or nothing.

A purchase agreement can also leave A/R with the seller. Comitz | Stanley describes three paths: include it in the price, let the buyer buy it at a discount, or have the seller keep it and collect after closing.

Which P&Ls to request

Whether you're buying or selling, these are the documents to pull or ask for:

• Three years of profit and loss statements. Your Automated Practice describes a professional valuation as starting with trailing 36 months of cleaned financials, and Progressive Practice Sales says lenders typically look for at least three years of tax returns. Ask your broker or lender exactly what they need.
• Balance sheets for the same period.
• Business tax returns for the same years, so the P&L can be reconciled. For SBA-backed purchases, Progressive Practice Sales also notes lenders commonly want buyer credit scores in the high 600s and a down payment often starting around 5%.
• Bank statements to match deposits to reported collections, which US Medical Funding lists as a lender check.
• Practice management reports: collections by payer, new patients per month, and visits by provider.
• An A/R aging report split by account type.
• An equipment list with age and condition.
• The lease, including term and assignment terms.

7 steps to estimate what your chiropractic practice is worth

Step 1: Gather three years of P&Ls, balance sheets, and tax returns. Make sure they reconcile with each other and with your bank deposits.

Step 2: Find your net profit for each year. Start from the bottom line of each P&L.

Step 3: Add back owner compensation and discretionary expenses. Add the owner's salary, personal vehicle, owner health insurance, and true one-time costs. Keep receipts for every add-back.

Step 4: Look at the trend. Note whether SDE is rising, flat, or falling across the three years. Buyers and lenders weigh the trend as heavily as the number.

Step 5: Choose a multiple range from published sources. Use the table above as a starting range, then adjust for owner dependency, payer mix, and new patient flow.

Step 6: Add equipment, A/R, and real estate separately. Value equipment at fair market value, discount A/R by age and type, and get a real estate appraisal if the building is part of the deal.

Step 7: Get a professional valuation. A DIY number is a starting point. Before you list or negotiate, get a formal appraisal from a broker or valuation firm.

Practice valuation checklist

• Three years of P&Ls, balance sheets, and tax returns
• Bank statements that match reported collections
• Documented add-backs with receipts
• Collections broken out by insurance, cash, membership, and PI
• New patients per month and visits by provider
• A/R aging report by account type
• Equipment list with age, condition, and estimated fair market value
• Lease term and assignment terms
• Notes on how much of the revenue depends on the owner-doctor
• A formal appraisal before listing

Related reading

If you're planning financing for a purchase, see our practice financing category. For contracts and asset purchase agreements, browse legal services, and for cleaning up your books before a sale, check accounting, payroll, and HR.

FAQ

What's my chiropractic practice worth?

Most valuations start with seller's discretionary earnings times a market multiple, then add equipment, receivables, and any real estate. Published SDE multiples for chiropractic practices run roughly 1.5x to 3x. A formal appraisal sets the number buyers and lenders use.

What is SDE in a chiropractic practice valuation?

SDE, or seller's discretionary earnings, is net profit plus the owner's compensation, personal benefits, and one-time expenses added back. It shows the total cash a single owner-doctor gets from the practice and is common for smaller practices.

Are accounts receivable included in the practice price?

Often not. A/R is usually valued separately using an aging report, with older balances discounted more. The agreement can include it in the price, sell it to the buyer at a discount, or leave it with the seller.

Which P&Ls should I request when buying a chiropractic practice?

Ask for three years of profit and loss statements, balance sheets, and business tax returns, plus bank statements, collections by payer, an A/R aging report, an equipment list, and the lease.

How much does a chiropractic practice appraisal cost?

It varies by provider and practice size. Practice Brokers Inc. lists a $3,500 appraisal fee for an average-size clinic, with larger clinics costing more. Other firms quote individually, so ask for the fee in writing.

Fees and figures were checked on the sources' own pages on Nov 3, 2026 and may change. "Not published" means we could not find the figure on the source's site. Always confirm current fees in writing.