how do I value a practice

My friend was tasked with selling a practice in Massachusetts.The problem is "what's it worth? Are there some metrics or is there someone that does this type of consulting? We are at a loss. HELP!!

I would spend time looking at the books. Get a idea of expenses and how much it has taken in before. What is the market like in the area, what kind of competition is near by. Look at the town its located in, is the town growing or has it had very little growth or even decline. What is the median household income. The list could go on and on I am sure I have not even mentioned the important things.

Any business is worth what a willing buyer will pay. That being said you can list the assets (equipment and inventory) and provide the tax returns for the previous three years. This may be a starting point for negotiations.

Are there any consultants that do this type of work in our business?

This is one place that does consulting. https://www.cleinman.com/ I know a few doctors that are in his peer groups that seem to like him. Other than that, I don't know much about what it cost. You could at least contact him and see what they say

Thanks all. I passed the info to my friend and hope it does the trick. I appreciate the help.