Adjustments to EBITDA
A recent post on Axial.net, by Brent Beshore of adventur.es, titled "EBITDA Adjustments From Crazytown" points out that "Adjustments can be perfectly acceptable" but some "bogus" adjustments are where "wishful thinking intersects with the bottom line".
Highlighted "bogus" adjustments to EBITDA include;
Owner Compensation
Leadership Compensation
Sub-Contracted Labor Costs
Marketing Expenses
“One-Time” Expenses
Research & Development Expenses
Retroactive Change Benefit
Legal Fees
The gist of the post is, adjustments can be reasonable and important but expenses required to operate the business shouldn’t be considered acceptable adjustments to EBITDA.
Read the full post on Axial.net HERE.
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