Review EBITDA adjustments for credibility
A line-by-line test of adjusted EBITDA add-backs with support needed, risk rating, and a defensible adjusted figure.
The prompt
Review the adjustments behind an adjusted EBITDA figure.
Context: [e.g. "our board reporting", "a target in an acquisition", "lender covenant reporting", "fundraising materials"]
Reported EBITDA: [AMOUNT and period]
Adjustments proposed: [PASTE each: description, amount, and explanation]
Supporting evidence available: [invoices, contracts, payroll records, board minutes]
Any definitions we must follow: [e.g. credit agreement definitions, caps on add-backs]
For each adjustment, assess:
1. Is it truly non-recurring, or does a similar cost appear every year under a different name?
2. Is it outside normal operations, or a cost of doing business (e.g. recurring restructuring, ongoing litigation)?
3. Is the amount supported by evidence, or estimated?
4. Pro forma adjustments (synergies, run-rate savings, annualized new contracts): are they achieved or only planned?
5. Are there missing negative adjustments (one-off gains, below-market owner salary, capitalized costs that should be expensed)?
Return:
- A table: Adjustment | Amount | Category | Evidence | Credibility (strong/moderate/weak) | Comment.
- A revised adjusted EBITDA range: conservative, base, and as presented.
- Questions to ask management.
- Wording guidance for presenting the figure with a reconciliation to reported EBITDA.
Use only information I provide; mark gaps [REQUEST SUPPORT]. For public reporting, non-GAAP rules apply; confirm with legal counsel and auditors.
Highlighted [brackets] are blanks to replace with your own details.
Fill in the blanks and use this promptMore Finance & Accounting prompts
What to fill in
- AMOUNT and period
- PASTE each: description, amount, and explanation
- invoices, contracts, payroll records, board minutes
- e.g. credit agreement definitions, caps on add-backs
- REQUEST SUPPORT
How this prompt is built
This prompt follows the Few-Shot structure (Few-shot prompting). A few-shot prompt includes one or more worked examples of the input and the output you want, so the model can copy the pattern instead of guessing it.
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