EBITDA adjustments in CIMs?
Hi guys:
I'm new to this and would really appreciate your help and advice! When you get a CIM, they often include a page of EBITDA adjustments. What do you do with these adjustments? I know that you are supposed to look at them and decide if you accept all of these adjustments, but for example, if you don't think certain historical adjustments should be accepted (but the future projected year amount for this item is 0), what do you do for the future years?
Let's say from year Historical 1 - historical 5, there's an amount of $2 that you think shouldn't be added back to EBITDA; however, for years Future 1 - 5, the projected amount is 0. What do you do to this item for the future years?
Thanks!
It's forecasted to be 0 because they say it's non-recurrring--> question is if you believe that. In addition: you always have one-off items (legal fees, etc) in a business.
worked on the lending side this summer and we would typically just do what the sponsor underwrote Ebitda at. There are some things in the MM like season tickets on the company card that’s a fairly easy “yes” but there are things like run-rate revenue that is just a plane no
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