DME Business Valuation
DME Business Valuation Calculator & Exit Planning Built for Medical Equipment Suppliers
We built one platform that tracks your DME company'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 DME Business Owners Have No Idea What Their Company is Actually Worth
Current Durable Medical Equipment (DME) Valuation Multiples (2026)
DME business valuations depend on product mix and accreditation. 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 No more waiting for annual appraisals or paying $15K+ for outdated reports.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 DME Business Value
Your patient service matters, but sophisticated buyers evaluate these factors that determine premium pricing:
Product Mix
High-Value Categories
DME product categories have vastly different economics. Respiratory (oxygen, CPAP, ventilators) often has better margins than commodity items. Complex rehab equipment commands different reimbursement than standard wheelchairs. Understanding your product mix helps assess revenue quality and margin profile.
Commodity-only = margin pressure
Accreditation
Medicare Accredited + Bonded
Medicare accreditation and surety bonding are required for Medicare billing and signal operational legitimacy. Accredited DME suppliers can access patients that non-accredited competitors can't. Accreditation is baseline for most acquirers.
No accreditation = Medicare excluded
Payer Contracts
Medicare + Commercial Contracts
Medicare reimbursement rates have faced pressure, making commercial contracts increasingly important. Having contracts with major commercial payers provides revenue stability beyond Medicare. Evaluate your payer mix and contract portfolio.
Medicare-only = rate pressure
Referral Relationships
Hospitals, Physicians, Home Health
DME orders come from hospitals, physicians, and home health agencies. Strong referral relationships provide sustainable patient flow. Concentration with few referral sources creates risk. Build and maintain diversified referral partnerships.
Concentrated referrals = vulnerable
Billing & Compliance
Clean Billing, Audit History
DME faces significant billing scrutiny—prior authorizations, documentation requirements, and audit exposure. Clean billing practices and compliance history are essential. Any audit issues, overpayment demands, or compliance problems create deal risk.
Billing issues = deal risk
Delivery & Service
Reliable Delivery, Patient Setup
DME requires delivery, patient setup, and often ongoing service. Reliable delivery capabilities and patient education differentiate quality providers. Track delivery metrics and patient satisfaction—they indicate operational quality.
Poor service = patient loss
How to Value a DME Business
The U.S. durable medical equipment market includes approximately 12,000 suppliers generating over $55 billion in annual revenue. DME companies provide wheelchairs, hospital beds, CPAP machines, oxygen equipment, prosthetics, and other medical devices to patients.
Seller's Discretionary Earnings (SDE) is the standard valuation method. DME businesses typically sell for 2.0x to 4.0x SDE. Companies with diversified product lines, strong referral relationships, and Medicare/Medicaid accreditation command the higher end.
Revenue multiples for DME businesses generally range from 0.30x to 0.60x annual revenue. Companies with recurring revenue from rental equipment (oxygen concentrators, CPAP machines) and resupply programs command higher multiples than those relying on one-time equipment sales.
The unique valuation factor for DME is the accreditation status, competitive bidding position, and product mix. Medicare accreditation and state licensure are essential operating requirements that take significant time and investment to obtain. The CMS competitive bidding program has compressed margins for many product categories, making product diversification critical. Companies with strong resupply programs — automatically shipping replacement CPAP masks, nebulizer supplies, and other consumables — create recurring revenue that buyers find highly attractive.
DME consolidation has increased as smaller suppliers struggle with regulatory complexity and reimbursement pressures, while larger operators seek geographic expansion and product diversification. Use our free calculator above to get your instant estimate, then track your value monthly with YourExitValue.
Frequently Asked Questions
What multiple do DME businesses sell for?
DME businesses typically sell for 2.5x – 4.5x SDE or 4x – 7x EBITDA. Companies with high-value product mix (respiratory, complex rehab), commercial contracts, and clean compliance command premium multiples.
How does product mix affect DME value?
Significantly. Product categories have vastly different economics. Respiratory often has better margins than commodity items. Product mix affects revenue quality and margin profile.
Who buys DME businesses?
Regional and national DME consolidators, home health companies adding DME, hospital systems, PE-backed healthcare platforms, and individual buyers seeking healthcare distribution businesses.
Is accreditation required for DME value?
Essentially yes. Medicare accreditation is required for Medicare billing. It's baseline for most acquirers and signals operational legitimacy.
How important is billing compliance?
Critical. DME faces significant billing scrutiny. Clean billing practices and audit history are essential. Compliance problems create deal risk.
What's the fastest way to increase my DME value?
Three high-impact moves: 1) Build higher-margin product categories (respiratory, complex rehab), 2) Develop commercial payer contracts, 3) Maintain impeccable billing compliance.