medium · Private Equity value-creation

During financial due diligence, an analyst identifies that a target company's reported EBITDA of $100M includes a $10M one-time gain from a legal settlement and $5M in non-recurring restructuring costs. Additionally, the company will incur $2M in annual public company costs that will disappear post-LBO.

What is the Adjusted EBITDA?

  1. $95M
  2. $93M
  3. $97M
  4. $107M

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