medium · Investment Banking valuation-core
A disciplined analyst identifies that GearWorks LLC had a one-time $20 million gain from a legal settlement.
How should this be treated to arrive at 'Adjusted EBITDA' for valuation purposes?
- Add the $20 million to EBITDA.
- Subtract the $20 million from EBITDA.
- Move the $20 million to the Financing section of the Cash Flow Statement.
- Leave the $20 million in EBITDA but adjust the tax rate.
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