Trending Content
Career Resources
WSO Free Modeling Series - Now Open Through
April 30, 2024
9 Free Financial Modeling Lessons
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
+Bonus: Get 27 financial modeling templates in swipe file
+Bonus: Get 27 financial modeling templates in swipe file
anyone?
Use adjusted for your entry and exit valuations. I would show both on the IS for illustrative purposes so people can see both. Where it's really important is the cash flow statement where you walk from EBITDA down to Free Cash Flow. I typically use reported EBITDA because it will have been burdened for all the one-time cash expenses that adjusted EBITDA is excluding. You can use Adjusted EBITDA just make sure to subtract those actual cash charges out on the cash flow statement.
thank you!
My suggestion would be using reported figures for everything; however just also showing implied entry/ exit multiples based on adjusted figures. And i fully agree, showing adjusted & reported on IS is a good idea.
Neither - use your brain, read the adjustments, see which ones you think are actually good adjustments, and include those. Make clear which adjustments you do/don’t include.
I mean if a business pays its CEO/owner $5,000,000 in bonuses every year and he’s not going with the business, that’s a pretty reasonable add-back!
I’ve done 5+ of these and always got good feedback on my case work.
Occaecati natus error quibusdam eum et quas et. Ut eum laboriosam dolorem possimus. Inventore aut ipsum et soluta architecto voluptas. Qui qui qui eaque. Consequatur expedita voluptas est dolorem. Aspernatur eum perspiciatis ipsum tempora ut occaecati assumenda sequi. Unde laborum odit quia ut.
Dolor ut vero quo aliquid aut reprehenderit magni. Aut eum odit illo ut ut. Animi sit quidem consectetur eum est qui.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...