# Adjusted EBITDA

**Adjusted EBITDA:** Adjusted EBITDA, in a dental practice sale, is earnings before interest, taxes, depreciation and amortization, normalized for owner-specific and one-time items, most importantly by replacing the owner’s actual pay with a market-rate dentist’s compensation.

Adjusted EBITDA, in a dental practice sale, is earnings before interest, taxes, depreciation and amortization, normalized for owner-specific and one-time items, most importantly by replacing the owner’s actual pay with a market-rate dentist’s compensation.

Common adjustments include personal expenses run through the practice, non-recurring costs and below-market rent paid to an owner-held building. Because adjustments drive price, buyers often test them with a quality of earnings review.

Source: DDSIntel glossary, https://ddsintel.com/glossary/adjusted-ebitda

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