Understanding the Valuation of Your Medical Clinic | Medical Monday - Ep 53

15 Min Listen

In this episode, I'll break down the key factors that determine your clinic's valuation, how to increase its value, and what can potentially devalue it. We'll explore the importance of your financials, whether based on EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) or SDE (Seller's Discretionary Earnings), and how these metrics impact the worth of your clinic. I’ll also discuss the importance of building a brand, maintaining clean accounting records, and ensuring your services are scalable and marketable.

We'll delve into understanding your clinic's worth. Many clinic owners often overestimate their clinic's value, so we’ll break down the fundamental principles of EBITDA vs. SDE to give you a clear understanding of how these metrics are used in valuation.

I'll also explain how to calculate the value of your clinic based on EBITDA and SDE, including typical valuation multiples. This section will help you understand what a venture capitalist or private equity group looks for in your financial statements.

Welcome to The Spinoso Podcast hosted by CEO, doctor, comic book geek, and car guy, Alex Spinoso. I help people and companies grow - especially in the medical business. While my experience and expertise is in scaling all types of medical businesses to 7, 8, 9-figures or more, I can be a mentor to anyone who wants to take ownership of their lives, become a better leader at home and at work, and overcome any obstacle that stands in their way.

(0:00) - Intro

(1:54) - How much is your clinic worth?

(4:48) - Build a brand

(5:45) - Clean accounting

(7:30) - Things to keep in mind about scaling

(8:30) - Sheer size

(9:28) - Gross vs. net

(9:50) - Managers and owners responsibilities

(10:12) - Scalability and sellability

(12:30) - Have set procedures

(13:07) - Wrap up

(13:54) - Final Thought