practice level vs. enterprise level ebitda in the dental space

by a searcher from University of San Francisco - School of Management

1 year ago

I am a self-funded searcher currently valuing a company in the dental space, and this is the first time I've run into multiple EBITDAs. What is the difference between the practice-level and enterprise-level adj. EBITDA? For the purpose of the valuation which should I put more emphasis on?

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intermediary from Brigham Young University

It's important to understand both practice-level and DSO-level EBITDA, and a number of other factors like geographic density, doctor churn, payor mix, same store sales growth, competitive landscape, etc.. Also watch out for folks where they may quote an SDE # and not include doctor compensation.

1 year ago | like reply | 0 likes

intermediary from The University of Chicago - Booth School of Business

Agree with Bill Wiersema‌ & Dzmitry Miranovich‌. Such structure exists for efficiency of shared services. Other reasons are tax, licensing and management incentives.

1 year ago | like reply | 0 likes

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