Private Equity Valuation Tool
Understand how Private Equity firms calculate your Enterprise Value by adjusting standard Net Income into "Adjusted EBITDA."
PE-Readiness EBITDA Calculator
See how Private Equity values your Med Spa based on adjusted EBITDA.
Financial Inputs (Annual)
Consumables, neurotoxins, retail products.
Rent, marketing, staff payroll (excluding owner).
Add-Back Adjustments
PE firms will "add back" the difference between what you pay yourself and what it would cost to hire a medical director replacement.
Standard Net Income
$900,000
Adjusted EBITDA
$1,150,000
Margin: 38.3%
Estimated Enterprise Value
4x - 7x Multiple
$4.6M - $8.1M
Why "Adjusted EBITDA" Matters
Private Equity buyers don't just look at your tax returns or standard Profit & Loss statements. They look at EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) and then apply Add-Backs to determine the true cash-generating power of the business.
Common Med Spa Add-Backs:
- Owner Compensation: If you pay yourself $750k but it would only cost $300k to hire a Medical Director to replace you, the $450k difference is added back to EBITDA.
- Personal Expenses: Vehicles, travel, or cell phones run through the business but not required for operations.
- One-Time Legal Fees: Rare lawsuits or trademark registrations that will not recur.