Private Equities
Returns & Ops

Adjusted EBITDA

Adjusted EBITDA modifies reported EBITDA to add back one-time, non-recurring, or owner-specific items to show a normalized picture of ongoing earnings. Examples include one-off legal costs, above-market owner compensation, or costs expected to disappear after the deal. Because add-backs directly raise the earnings a multiple is applied to, buyers scrutinize them closely in the QoE.