LBO Test - start Cash Flow from NI or EBITDA?

Hi Monkeys,

I was wondering if in your LBO modeling tests do you start Cash Flow Statement from EBITDA or Net Income? 

I usually start with Net Income as it looks 'cleaner' to be with regards to taxes. However, I am considering if the reviewer might hold this against me - one could save a few lines and do it from EBITDA / starting from Net Income might be deemed as 'inefficient'.

Any views would be appreciated!

3 Comments
 

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