Your Net Worth Calculator
Scenario #1: SELL NOW
Practice Value NOW (12x EBITDA):
Investment Growth (adds to principal at 10% per year):
Your Net Worth in Years(if you Sell NOW):
Scenario #2: WAIT & GROW
FUTURE Practice Value (6% growth but only a 5x sales multiple [versus 12x]):
Personal Savings (10% profit margin on revenue, save 20% of that profit annually):
Your Net Worth in Years(if you wait / forced to sell at a lower multiple):
How much will you
LOSE
by waiting and selling in years?
Recommendation: Sell now while Private Equity is still an option. It may be leaving soon, and your value could go down.
Parameters Used:
- Annual Revenue Growth: 6%
- Annual Profit Margin: 10%
- Annual Investment Return: 10%
- Annual Savings Rate: 20% of profit
- Current Sales Multiple: 12x
- Future Sales Multiple: 5x
Want to discuss what these figures mean for your practice?
Get Your Free Practice Valuation