Make your earnings make sense.
The number is only the beginning. Build a clear bridge from reported earnings to proposed adjusted EBITDA, with every assumption in view.
Start the earnings lessonNo account. No upload. Your worksheet stays in this browser until you choose to share a summary.
An adjustment can increase or decrease earnings. Including one here does not establish that a buyer or advisor will accept it.
Show the starting point.
Explain each adjustment.
Keep the judgment human.
Learn the bridge.
Then build your own.
Follow one illustrative business through four steps. Each step explains what changes the number, and what still needs a human judgment.
Illustrative example only
Start with the profit on the statements.
The earnings bridge
- Net income
- $210,000
- Interest, taxes, depreciation & amortization
- +$90,000
- Proposed adjustments
- +$40,000
- Net income
- $210,000
Start with the same period across all inputs.
Good earnings have
a paper trail.
Adjusted EBITDA is a conversation about what earnings represent. The useful part is the reconciliation.
Read the earnings bridge guideWhat belongs in base EBITDA?
EBITDA starts with net income, then adds interest, income taxes, depreciation and amortization. Use a consistent reporting period and keep the source statements nearby.
What makes an adjustment worth discussing?
A clear explanation, a traceable amount and evidence of why it changes the earnings picture. Normal recurring operating costs should not disappear simply because removing them improves the result.
How to test an add-backWhy does the worksheet allow deductions?
Normalization can work in both directions. An unusual gain or an understated ongoing cost may call for a reduction. A bridge should make those assumptions visible too.
Is adjusted EBITDA the value of my business?
No. This worksheet calculates an earnings measure. Business value also depends on risk, operations, working capital, debt, deal terms and other facts that require review.
An earnings worksheet
that shows its work.
Use figures from the same reporting period. Enter whole US dollars, including a minus sign for losses or deductions. Enter 0 for items that are zero.
Replace the current worksheet?
Establish your starting EBITDA
Use interest expense and income tax expense as reported; preserve negative values. Do not add back interest, income taxes, depreciation or amortization again below.
Make the case for each change
Record a proposed normalization, its amount and the evidence to check. These rows remain proposed, even when included in the math.
A positive amount adds to earnings; a negative amount reduces them. Check that every expense was actually recorded in the starting period and that no adjustment appears twice.
The math is a start.
The context is human.
Bring your earnings questions to a human advisor. Request an earnings and value review through ExitStrategies.
Your contact request does not automatically share this worksheet. If you choose to share, only the numeric totals listed in the checkbox go with it.
Keep supporting records and confidential details out of the form. No patient information.