Dermatology Practice Valuation
Dermatology Practice Valuation Calculator & Exit Planning Built for Dermatologists
We built one platform that tracks your dermatology practice's value monthly, identifies exit gaps early, and ensures your personal finances align with your exit timeline.
1,000+ Businesses have joined YourExitValue.com
Most Dermatology Practice Owners Have No Idea What Their Practice is Actually Worth
Current Dermatology Practice Valuation Multiples (2026)
Dermatology practice valuations are premium due to favorable economics and PE interest. Here's the market:
Every business is different. That's why you need to track your value.
Included in Your Exit Value is a complete Exit Planning Assessment where you track your progress quarterly against your results from the previous quarter.
Know your number and watch it grow
Most business owners guess at their value. You'll know it with precision.
Our platform uses six proven valuation methodologies to give you a complete picture of what your business is worth today—and tracks how that number changes month over month. No more waiting for annual appraisals or paying $15K+ for outdated reports.
See your trends. Spot opportunities. Make informed decisions
What Actually Drives Dermatology Practice Value
Your clinical expertise matters, but sophisticated buyers evaluate these factors that determine premium pricing:
Revenue Mix
Medical + Surgical + Cosmetic
Balanced dermatology practices have three revenue streams: medical (insurance-based visits), surgical (Mohs, excisions), and cosmetic (cash-pay aesthetics). Each has different economics and growth profiles. Practices with healthy cosmetic revenue often have better margins; pure medical faces reimbursement pressure.
Medical-only = margin pressure
Provider Coverage
Multiple Dermatologists + PAs/NPs
If you're seeing all patients yourself, the practice is heavily dependent on you. Having associate dermatologists and mid-level providers who see patients independently demonstrates capacity and reduces key person risk. Building a provider team takes time but significantly increases value.
Solo provider = key person risk
Mohs Capability
Mohs Surgery On-Site
Mohs micrographic surgery is a high-value service with excellent reimbursement. Practices with fellowship-trained Mohs surgeons capture revenue that referring-out practices miss. If you don't have Mohs capability, adding it (or a Mohs surgeon) can significantly improve practice economics.
No Mohs = referrals out
Cosmetic Services
Injectables, Lasers, Skin Care
Cosmetic dermatology—Botox, fillers, lasers, medical-grade skincare—provides cash-pay revenue with better margins than insurance-based care. Growing cosmetic services diversifies revenue and attracts patients who value aesthetics. Track cosmetic as a percentage of total revenue.
No cosmetic = margin limits
Patient Volume
Strong Daily Patient Count
How many patients do you see daily? Volume demonstrates demand and operational capacity. Track patient counts over time—buyers want to see consistency or growth. Dermatology often has long wait times for appointments; a practice with capacity to grow is more valuable.
Declining volume = buyer concern
Location & Facilities
Modern Clinic, Procedure Rooms
Facility quality affects patient experience and service capability. Modern clinics with adequate procedure rooms enable efficient care. Cramped or dated facilities may limit growth and cosmetic appeal. Assess your facility's ability to support expansion.
Dated facility = growth limits
How to Value a Dermatology Practice
The U.S. dermatology market includes approximately 18,000 practices generating over $20 billion in annual revenue. Dermatology has been one of the most active private equity acquisition targets in healthcare, making accurate practice valuation essential for any dermatologist considering their options.
EBITDA is the preferred valuation method for larger dermatology practices, while SDE is used for solo practitioners. Dermatology practices typically sell for 2.0x to 3.5x SDE, or 6.0x to 12.0x EBITDA for larger groups targeted by PE platforms. These are among the highest multiples in healthcare, reflecting dermatology's favorable payer mix and procedure revenue.
Revenue multiples for dermatology practices generally range from 0.60x to 1.2x annual collections. Practices with significant cosmetic revenue (Botox, fillers, laser treatments, body contouring) often command higher multiples because cosmetic procedures are cash-pay with no insurance dependency.
The unique valuation factor in dermatology is the revenue mix between medical, surgical, and cosmetic services. Practices with a balanced mix are most valuable: medical dermatology provides stable insurance-based revenue, surgical Mohs procedures generate high per-case revenue, and cosmetic services deliver premium cash-pay margins. Practices overly dependent on any single revenue stream carry more risk. PA and NP utilization is also critical — practices leveraging mid-level providers to extend the dermatologist's capacity demonstrate scalable economics.
Private equity has transformed dermatology valuations. Platforms like U.S. Dermatology Partners, Forefront Dermatology, and Schweiger Dermatology have driven multiples to historic highs. Even practices not selling to PE benefit from this competitive environment. Use our free calculator above to get your instant estimate, then track your value monthly with YourExitValue.
Frequently Asked Questions
What multiple do dermatology practices sell for?
Dermatology practices typically sell for 4.0x – 8.0x SDE or 7x – 14x EBITDA. Practices with balanced revenue mix, multiple providers, and Mohs capability command premium multiples.
How does revenue mix affect dermatology value?
Significantly. Balanced practices (medical, surgical, cosmetic) have better economics than medical-only. Cosmetic revenue provides cash-pay margins that improve overall profitability.
Who buys dermatology practices?
PE-backed dermatology platforms (very active—multiple large consolidators), multi-specialty groups adding derm, hospital systems, and individual dermatologists seeking established practices.
Does Mohs capability affect dermatology value?
Yes. Mohs surgery is high-value with excellent reimbursement. Practices with on-site Mohs capture revenue others refer out. Adding Mohs capability can significantly improve economics.
How important are cosmetic services?
Increasingly important. Cash-pay cosmetic services provide better margins than insurance-based care. Growing cosmetic revenue diversifies and improves overall practice economics.
What's the fastest way to increase my dermatology practice value?
Three high-impact moves: 1) Add providers to reduce owner dependency, 2) Build cosmetic services for better margins, 3) Add or expand Mohs surgery capability.