EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)

EBITDA is a metric that shows how much money the business makes from its core operations, without considering expenses like interest on loans, taxes, and the loss of value of its equipment over time. Essentially, EBITDA helps gauge your med spa’s financial health by focusing on its operational performance. EBITDA is one of the key metrics that private equity uses to value med spas.

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