Are you considering selling your Medical, Chiropractic, Physiotherapy, Podiatry or other type of healthcare practice? Get in touch with our expert team to request an appraisal here. We work with sellers in Sydney, Melbourne, Brisbane, Perth, Adelaide and all regional areas of Australia. Otherwise, keep reading to learn more about how we approach allied health clinic appraisals in 2026.

So many times we get asked what the average price of a Medical practice in Sydney is, or a Physiotherapy practice in Brisbane. The answer is, there is no answer. There is no average. There are too many variables involved, and the practices that sell for the most are rarely the busiest ones on paper, they are the ones structured to sell.

Here is the process we actually use to arrive at an appraisal figure, step by step.

Step 1: Start with your true maintainable profit

Before anything else, we work out what the practice actually earns once it is running normally, not what shows on your tax return.
This means taking your last 3 to 5 years of financials and adjusting for anything that would not carry over to a new owner. The most important adjustment for a clinician-owned practice is deducting a market wage for the clinical work you personally perform. A buyer is paying for the profit left over after someone replaces you on the tools, not your current accounting profit.

Step 2: Understand how that profit translates to a price

Once we have your adjusted, normalised profit it gets multiplied by a factor that reflects its risk profile to a buyer including how much of the practice depends on you personally, how the industry is currently trading, and how the 12 factors below stack up.
Two clinics with identical revenue can appraise very differently depending on how much of that profit relies on the owner physically being there. A multi-practitioner clinic where associates generate most of the billings will often appraise materially higher than a solo-operator clinic on the same revenue.

Step 3: Know the 12 factors that move the needle up or down

This is where the specifics of your clinic come in. We assess each of the following when preparing your appraisal:

  1. Profitability. A practice netting 30% of gross will appraise higher than one netting 10%. This sounds obvious, but many owners have never actually calculated their true net margin.
  2. Clinic location. Good street frontage and easy parking appraise better than a practice tucked away in a side street. Clinics in rural regions typically appraise lower and take longer to sell.
  3. Facilities. A dated, cramped or run down fit-out reduces the price, even when the owner has stopped noticing it after years of working there.
  4. Equipment. Newer, well maintained equipment appraises higher. Check the age of any major equipment and whether recent technology has made it obsolete.
  5. Fee structure and hours. How many hours does the practice need to be open to generate its revenue? A practice earning strong revenue from fewer hours is more attractive to a buyer.
  6. Patient database. How many new patients come through the door each week, and how many return? Consistent new patient flow and strong retention both lift the price.
  7. Competition. How dense is the local market, how close is the nearest competing clinic, and how well is it performing? Denser markets are not automatically worse, but they change how a buyer assesses risk.
  8. Staff. A stable, well trained team appraises higher than one with high turnover, because the buyer is also acquiring the workforce.
  9. Referral network. A strong reputation with local GPs and other allied health practitioners can meaningfully lift patient flow independent of marketing spend.
  10. Financial history. Is the practice trending upward or has it recently declined? Trend direction affects the multiple as much as the current year’s number.
  11. Lease. Favourable terms and renewal options, and manageable outgoings and annual increases, all support a stronger price.
  12. Goodwill. How much of the practice’s revenue is tied to your personal reputation rather than the business itself? This is usually the single biggest factor in the appraisal.

Step 4: Reduce your personal dependence before going to market

Goodwill and owner dependence are worth calling out on their own, because this is the biggest lever most owners have and the one most often left too late.
If you currently generate most of the clinic’s billings yourself, consider spending 6 to 12 months shifting patients toward associates before listing the practice. In that time, focus on:

  • Bringing on or building up employed or contracted practitioners
  • Documenting procedures so the clinic does not rely on your personal knowledge
  • Strengthening referral sources beyond your own relationships
  • Confirming you are willing to stay on for a handover period to help sustain goodwill

This single step can make a practice both easier to sell and appraise for more.

Step 5: Prepare your information for buyers

Once you have a realistic picture of profit and price, buyers will want to see the detail behind it. A well prepared information pack typically includes:

  • 3 to 5 years of P&Ls and tax returns
  • Revenue and profit trends
  • Patient visits and new patients per month
  • Active patient numbers and average revenue per visit
  • Practitioner utilisation and billings
  • Staff and contractor arrangements
  • Lease terms and renewal options
  • Equipment and assets
  • Marketing sources, website traffic, rankings and reviews
  • Documented operating procedures
  • Owner hours and responsibilities

One note on patient records specifically. Healthcare providers are subject to the Privacy Act regardless of the usual small business exemption, so patient data cannot be handled the way an ordinary customer list would be during a sale. Aggregated or anonymised patient metrics are the right approach for due diligence, rather than handing a prospective buyer identifiable patient information directly.

Every practice is different. Type, size, location, owner involvement, they all matter, and it is impossible to put them all in a pot and pull out an average. That is why so many owners use Healthcare Practice Sales to appraise and sell their practice.

Get in touch with our team of specialist Healthcare Business Brokers today to request a confidential appraisal of your healthcare business.