Optometrists Building Empires

EBITDA explained: earnings before interest, taxes, depreciation, and amortization, and why it isn't the same as cash flow
Cash vs. accrual P&Ls and how each changes the way you read your monthly numbers
The 50% benchmark: cost of goods plus non-doctor payroll, including payroll taxes, at or below half of revenue
Under 80% schedule fill points to a volume problem; at a full schedule, look at collections, per-patient average, staffing, and vendor contracts
A strong practice lands around 25% all-in doctor take-home, roughly the efficiency private equity operates at
Buyers typically look at a three-year P&L runway; a growing practice can earn a 5 to 7x multiple versus 3 to 4x for a flat or declining one
Rule of thumb: average your last three years of EBITDA, then multiply by 4 on the low end and 6 to 7 on the high end
Join the next iCareGrow event at iCareGrow.com; book a meeting with Ankit for a free copy of Optometry Redefined at meetings.hubspot.com/ankit98/optometry-redefined; connect at linkedin.com/in/ankitpatelcvc and mybcat.com

Show Notes

A solo episode pulled from the iCareGrow series conversations. EBITDA gets thrown at practice owners every time a buyer makes an offer or a bank sizes a loan, and most owners nod along without knowing what it really measures. Ankit breaks it down in plain terms: what EBITDA is, why it isn't cash flow, the 50% cost benchmark, the 80% schedule-fill check, the 25% doctor take-home target, and a rule-of-thumb range for what a practice might sell for. Grab your P&L and follow along. Join the next event at iCareGrow.com. Connect with Ankit: LinkedIn: https://www.linkedin.com/in/ankitpatelcvc/ MyBCAT: https://www.mybcat.com iCareGrow events: https://icaregrow.com/ Book a meeting with Ankit (free copy of his book Optometry Redefined included): https://meetings.hubspot.com/ankit98/optometry-redefined Optometrists Building Empires: https://buildingempires.live

What is Optometrists Building Empires?

Welcome to Optometrists Building Empires! Each week, host Ankit Patel, explores the journey of practice ownership and leadership in optometry with some of the top minds in his field. This show is sponsored by My Business Care Team: We help increase revenue, reduce costs, and reduce staffing headaches. Let's build your empire together!