$
Total production collected, before deductions
%
Total expenses ÷ collections × 100
SDE = Owner's Compensation + Net Income + Total Add-back Adjustments (personal/non-business expenses run through the practice). This is the primary metric used to value a practice sold to an individual buyer.
$
Owner's comp + net income + add-backs
Adjusted EBITDA = Normalized owner compensation adjustment + Net Income + Add-backs. Typically lower than SDE. Used to calculate DSO valuation multiples.
$
Normalized owner comp adjustment + net income + add-backs
Not sure about SDE or EBITDA? Use our free calculator to derive both figures from your P&L line items, then come back here.
Open EBITDA Calculator