easy · Private Credit underwriting-credit-analysis

How does a 'Pro-forma acquisition' adjustment work in an EBITDA bridge when a company is bought mid-year?

1. It subtracts the deal's transaction costs from the target's earnings
2. It deducts the full purchase price paid from the EBITDA total
3. It adds the EBITDA the target would have generated if owned since day one
4. It simply annualizes the parent company's first month of reported revenue

Sign up free to see the explanation and track your rank →