Two numbers, same practice, same year: $4.4 million and $5.5 million. The difference comes down to one concept most surgeons never encounter until an LOI is already on the table: normalized EBITDA.

In this episode, Jared walks through what normalized EBITDA actually is and why a buyer's number is almost always higher than the one on your tax return. He breaks down the five adjustments that create the gap: owner compensation above market, family employment at above-market pay, personal expenses running through the business, one-time non-recurring costs, and lease terms on owner-held real estate. On a practice reporting $1.1 million in net income, those five adjustments can add over $1.1 million to the valuation.