---
title: Pediatric Practice Valuations
description: How much is your pediatric practice worth?
image: https://chipsblog.pcc.com/hubfs/blog1.jpg
---

# Pediatric Practice Valuations

September 3, 2023

[practice management](https://chipsblog.pcc.com/tag/practice-management)

Odds are that you have had to confront one of these issues in the last few years:

- associates who want to buy into your practice
- a partner who want to retire and buy out of your practice
- private equity parasites, in a variety of forms, have knocked on your door, perhaps even made you an offer

[Yes, I called them parasites - prove me wrong.]

It's impossible, or at least inappropriate, to dig into the considerations required to address these and other related scenarios *without knowing how much your practice is really worth!*  I've worked with too many practices who have sold out for a fraction of what they should have gotten or bought out retiring partners at a multiple of any reasonable value.  

Typically, getting a valuation for your practice requires the help of a third party - you need a neutral, expert opinion. There are many organizations, easily googled, who do this work, some probably even local to you.  Most of the time, I am not impressed by their results, as very few professional valuation companies understand pediatrics.   Further, many of these companies charge amazing amounts of money for what is clearly a formula and template driven 2-hour project for them.

So what do I do when I'm asked to help a practice with their partnership terms, which necessitates an understanding of the value of the business?  I direct people [here](https://www.pediatricsupport.com/practice-valuation), Paul Vanchiere's Practice Valuation content from Pediatric Support.  It features a long, detailed description of the elements that go into a proper valuation, an [excellent graphic of the process](https://www.pediatricsupport.com/_files/ugd/04f5ab_3e3faa2597124d39b7ae8b13e5ea5a67.pdf?index=true), and his [slide deck](https://www.pediatricsupport.com/_files/ugd/04f5ab_de33192518d44faba6ca95f41a247925.pdf?index=true) and [video](https://vimeo.com/355479599) of a presentation telling you how to do the work yourself or, at least, ensure that the valuation company you're working with is being complete.  I sincerely don't think there's a better resource for pediatricians trying to understand what their practice might be worth.

I agree strongly with Paul's comment here:

How frequently should a practice determine its value? The answer is "every year." PMI recommends that pediatric practices adopt a framework or formula to calculate their practice's value and update the numbers annually.

Paul let me know he'd recently updated the content, so I thought it'd be a good time to draw attention to it.   Take the time to digest his content and consider making this a regular part of your routine.  I am adding it to the [Pediatric Practice Management Calendar](https://chipsblog.pcc.com/pediatric-practice-management-calendar) right now!

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