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Rule of Thumb Practice Valuation

Does valuation have to be complex?  Isn’t there some quick formula or rule of thumb to get close?  There are a few things to be aware of when “guessing” at a business value.  The true value can vary greatly between practices, even if their revenues are similar.  Price to gross ratios of 49% to 90% are not uncommon.  There is a rule of thumb that does work pretty well however.  Lets look at which one works.