What Is Your Practice Really Worth? Free Cash Flow Valuation for a Professional Practice Explained

Many professional practices believe their value lies in turnover or accounting profit. In reality, value is driven by sustainable free cash flow. This session explains how free cash flow valuation works in a professional practice context and why it provides a more realistic view of worth. Attention is given to normalising earnings, adjusting for owner dependence, and understanding how risk and growth affect valuation outcomes. The session focuses on how valuers think and why certain practices attract higher values than others. Understanding this approach improves decision making around selling, buying, succession planning, and partner exits. This session brings clarity to a topic that is often misunderstood and poorly applied in practice valuations.