General Practice, Solo & Small Firm DivisionMagazine

Volume 17, Number 1
January/February 2000

Table 1: Arriving at a Reasonable Multiple

Valuation Factor

Multiplier Points  

Low Range

High Range

Base multiplier



Positive factors:    

l Core client group of the firm is fairly stable



l Seller is young enough to effect an orderly succession



l Firm is very profitable



Negative factors:    

l Firm is too reliant on seller for rainmaking and leadership



l Firm is tied to a bad regional economy



l Valuation multip



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