
08/29/2025
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization.
In simple terms, it’s a way to measure your practice’s profitability.
For owners, EBITDA is critical because when you go to sell your practice, the purchase price is based on your EBITDA, often multiplied by a factor (the “multiple”) depending on the size and strength of your business.
The higher your EBITDA, the more your practice may sell for. Buyers use multiples to determine purchase price:
• EBITDA of $100,000 → maybe a 1.5× multiple = $150,000 sale price
• EBITDA of $300,000 → maybe a 4× multiple = $1.2 million sale price
• EBITDA of $500,000 → maybe a 6× multiple = $3 million sale price
P.S. Now say EBITDA 5x fast and let me know how it goes. 😉