How We Calculate Your Preliminary Value Range

Two Methods, Blended

Your preliminary range blends two standard approaches to valuing a chiropractic practice: an EBITDA-multiple method and a collections-multiple method. Each looks at your practice from a different angle, and blending them gives a more balanced starting point than relying on either alone.

What "Adjusted EBITDA" Means

EBITDA stands for earnings before interest, taxes, depreciation and amortization — in plain terms, what your practice actually earns from operations. We start with your annual collections, subtract your annual overhead, and then add back two things a buyer typically normalizes for:

Above-market owner compensation. If you pay yourself more than a market-rate associate doctor would earn, the difference is added back — a new owner wouldn't necessarily take the same draw.

One-time or non-recurring expenses. Costs that don't reflect the practice's ongoing operations (a one-time equipment purchase, a legal settlement, and similar) are added back so they don't understate what the practice truly earns year to year.

The result is your "adjusted EBITDA" — the number both the EBITDA-multiple method and, indirectly, the collections-multiple method are built around.

Why the Range Is Wide

We present a range, not a single number, because a real transaction price depends on negotiation, buyer type, deal structure and due diligence — none of which are known at the questionnaire stage. Several factors specific to your answers can also adjust the range up or down, including revenue trend, doctor dependency, accounts receivable quality and payer mix. The range is intentionally widened to reflect that variance rather than imply more precision than a two-page questionnaire can support.

What This Estimate Is — and Isn't

This is a preliminary estimate for advisory discussion, not a formal appraisal, certified valuation, or binding offer. Actual transaction values depend on due diligence, buyer pool, deal structure and negotiation. Think of it as a starting point for a conversation with your advisor, not a final number.

Questions about your report? Contact ChiroEdge at info@chiro-edge.com or (517) 619-1290.