easy · Private Equity value-creation
An analyst at Alpha Capital is reviewing a Quality of Earnings (QoE) report for 'Global Services'. The report identifies a $2.5M one-time legal settlement paid by the company last year.
How should this affect the 'Adjusted EBITDA' calculation?
- It should be subtracted from the reported EBITDA.
- It should be ignored as it occurred in the prior fiscal year.
- It should be capitalized as an intangible asset on the balance sheet.
- It should be added back to the reported EBITDA.
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