Three statement model, adjustments (I don’t have PE or IB experience)

I was invited to interview and take a pre-assessment, which was with little instruction (which I feel was purposeful) so I’m not sure what the expectation is but I assume I’m building a three statement model with projections based on the data received. But they provided a template which is largely built out and one of the tabs is for IS “adjustments”, which I’m not sure what it entails. I am aware of the type of IS adjustments I make in my job but I’m not sure if it is the same on the PE side. Does anyone know what this could be referring to? Is this removing non-operating / one-time expenses? It wouldn’t be definitional like taxes, D&A, etc. because that’s already automatically taken out

And also projecting balance sheet on a monthly basis by TB account? I’ve only ever done IS and my current role and having a hard time tying out Assets to L&E

 

Yeah that sounds right to me, one time or non-recurring could be professional fees related to the proposed transaction, which you will not want to burden in your model going forward. There’s other fairly common adjustments (compensation changes for execs, etc.) , just try to get an idea for the context of each adjustment and how it impact the P&l

 

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