DSO Blog

What is EBITDA anyway?

Written by Everything DSO | Nov 16, 2022 4:49:56 PM

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?