The answer to your question is “Don’t count your chickens before they hatch.”Dear Bogleheads:
I own a solo medical practice that I started a few years ago. It is doing well and growing annually.
My family and I are on solid financial footing thanks to this community and the Bogleheads philosophy that I generally follow (plan, save, manage
investment costs, use index funds, stick to the plan, etc.) We have your typical tax deferred, taxable and Roth accounts and are on track for retirement. We own one primary residence that is nearly paid off.
When I do my net worth calculation, should I include my medical practice in the net worth calculation? It is a solo cardiology practice in the NYC metro area. I don't own the real estate but it has the imaging facilities and it generates good revenue and it's growing at about 10% over the last two years.
There are certain considerations to not including it in my practice.
I have no plans on selling it in the near future. I am almost 50 years old and plan to work in this practice for another 10-15 years. If I were to sell, it has extremely limited pool of buyers (mostly hospital systems or private equity). But when I look online for valuing a medical practice, I get anywhere from 8-10 EBIDTA. If I include this in me net worth calculation, it might change how I invest (e.g. change my equity allocation, etc.) so it is important for me to know if this is something that an individual would put in their net worth calculation.
So what do people think? Should I include it? Thanks.
JPM
I had a boutique consulting business and because my specialty involved a unique complex of skill sets, I too had a limited pool of potential buyers (who I had to provide even more training). I researched valuation metrics, talked to three friends who sold unrelated business, and met with a broker. The key point I learned is that whatever metric you think defines the worth of your business, the real value is what if offered in a purchase contract.
You have a long time before you are ready to move on. Keep researching the valuation process, networking with potential purchasers, and developing your book of business. It will eventually come to fruition.
Good luck in your efforts.
Statistics: Posted by Cruise — Thu Dec 11, 2025 3:34 am — Replies 12 — Views 714