Allied Health Business Valuations: What Multiples Are Buyers Paying in 2025?

Allied health Nurse

If you own an allied health practice in Australia—think physio, osteo, speech, psych, or OT—and you’re curious about what your business could sell for, you're not alone. With more private equity sniffing around multi-site operators and more baby boomer owners planning exits, valuations in the sector are under the spotlight.

In this post, we’ll unpack the current valuation multiples being paid for allied health businesses, key value drivers, and what buyers are really looking for. It’s built for practice owners and brokers—but also private buyers trying to understand fair pricing in today’s market.

✅ Quick Snapshot: Valuation Multiples for Allied Health (Australia, 2025)

Business Size Typical Multiple

Solo / micro practice (SDE) 1.8× – 2.3×

Small group (EBITDA <$1m) 2.8× – 3.5×

Mid-size (EBITDA $1–3m) 4.0× – 5.0×

Scale group (EBITDA $3–10m) 5.0× – 6.5×

Platform asset (EBITDA >$10m) 6.5× – 7.5×

These ranges are based on actual deal activity and represent enterprise value (EV) based on trailing twelve-month (TTM) EBITDA or SDE, depending on size. For very small owner-operator practices, SDE (Seller’s Discretionary Earnings) is more appropriate than EBITDA.

🔍 What Drives the Multiple?

Not all allied health businesses are created equal. Two practices with the same earnings can sell for very different prices. Why?

Here’s what pushes your multiple up—or drags it down:

🔼 What Increases Value

Multi-location footprint (especially in growth corridors)

Recurring funding streams (e.g., NDIS, DVA, EPC)

Diversified practitioner mix (psych + OT + speech is hot)

Strong clinician retention (vs high locum churn)

Minimal owner reliance (can the business run without you?)

Digital systems & clinical governance frameworks (especially if private equity is circling)

🔽 What Caps Your Multiple

Leases under 2 years or non-transferrable licenses

High reliance on one or two clinicians for revenue

Poor clinical documentation or inconsistent compliance

Seasonal revenue swings (e.g., school-based only)

🧠 Buyer Behaviour: Who’s Buying and Why It Matters

In deals under ~$5m, the buyers are mostly high-net-worth individuals or small groups with healthcare backgrounds. Above that threshold, you start seeing:

Private equity roll-ups (looking for scale and bolt-ons)

Mid-sized allied health groups expanding their footprint

Strategic buyers (e.g., NDIS or disability-focused operators)

Each buyer type values different things. For example:

Strategics want synergy and referrals

Private equity wants growth, systems, and bolt-on simplicity

Individual buyers care about income certainty and work-life balance

Tailor your pitch and prep accordingly.

📦 Deal Structure: It’s Rarely All-Cash

In Australia, deal structures typically include:

60–70% cash at settlement

10–20% vendor finance or earn-out

Balance deferred or performance-linked

If your business is under ~$3m EV, expect more reliance on vendor terms. Banks are still cautious lending against service businesses—especially with contractor-heavy models or thin margins.