If you’re looking into the valualtion of your practice by a DSO.
You might be wondering a bit more about EBITDA.
EBITDA is an acronym that stands for Earnings before Interest, Taxes, Depreciation, and Amortization.
It is commonly used by the financial and investment community as a measure of a business’s free cash flow on a pre-tax basis.
It allows analysts to focus on the outcome of operating decisions while excluding the impacts of non-operating decisions (like interest, tax rates, deprecation and amortization).
Their goal is to identify operating profitability as a singular measure of performance.
Private Equity funds universally use EBITDA to evaluate the companies they invest in.
Are you interested in learning how YOUR business would be evaluated?
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