EBITDA AnalysisWhat is your dental practice really worth?It depends. Traditionally dental practices have been valued as a percentage of collections, usually between 70% to 100%. However, with dental groups, investors, and financial analysts, they determine practice valuations based on a multiple of EBITDA. This is an acronym that stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. EBITDA essentially measures the cash flow in a business so investors and analysts like to use it as a basis to compare investment opportunities between industries, and companies within the same industry. In a dental practice, the target for a solid EBITDA margin is 20%. ICON can certainly partner with practices that have margins under 20%, but our goal is to help our partner practices exceed that threshold so both the doctors and ICON benefit accordingly. Here is a short video that explains what EBITDA is, and how it would typically be calculated for a dental practice: Free EBITDA AnalysisLet our Finance team analyze your EBITDA so you can better understand what your practice is worth, and where opportunities for improvement may exist based on industry benchmarks. There is no cost for this analysis. Please submit your contact information below, and a member from our team will contact you to perform the analysis. |
