medium · Private Credit underwriting-credit-analysis
A direct lender is conducting Quality of Earnings (QoE) analysis on a borrower with $34,400,000 in reported EBITDA. The borrower proposes several add-backs:$800,000 in non-recurring severance, $2,500,000 in projected synergies from a recent acquisition, and $1,100,000 for a new contract signed mid-quarter.
If the lender applies a 50% haircut to projected synergies and accepts all other items, what is the lender-adjusted EBITDA?
- $37,550,000
- $35,200,000
- $38,800,000
- $36,300,000
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