Boosting EBITDA: The Cost Savings Add-Back | Practical Law

Boosting EBITDA: The Cost Savings Add-Back | Practical Law

This Note examines adjustments portfolio companies can make to their net income to improve their EBITDA, in particular the pro forma add-back for cost savings. This Note also compares the cost savings add-back to two other common adjustments to EBITDA, the add-backs for permitted acquisitions or dispositions and for business optimization expenses or restructuring charges.

Boosting EBITDA: The Cost Savings Add-Back

Practical Law Practice Note 1-511-7909 (Approx. 9 pages)

Boosting EBITDA: The Cost Savings Add-Back

by Practical Law Finance with David Tarr of Willkie Farr & Gallagher LLP and Michael Zinder of Hunton Andrews Kurth LLP
Maintained • USA (National/Federal)
This Note examines adjustments portfolio companies can make to their net income to improve their EBITDA, in particular the pro forma add-back for cost savings. This Note also compares the cost savings add-back to two other common adjustments to EBITDA, the add-backs for permitted acquisitions or dispositions and for business optimization expenses or restructuring charges.