Confused about EBITDA calculation

by a searcher from Full Sail University

Jan 12,2021

This is from an offering memorandum provided by the broker. It appears he's calculating EBITDA by adding interest, depreciation and amortization to the 'ordinary income' line. Am I misunderstanding something? By definition, that seems to be very much not the EBITDA.

1 like
477 views
23 comments

searcher from INSEAD

I think other income should not be considered along with operating income and hence should not form part of EBITDA

01/27/2023 | like reply | 0 likes

intermediary from St. Vincent College

Looks right to me, but the devil is in the details.

01/27/2023 | like reply | 0 likes

More on Searchfunder

Now everyone has unlimited IBISWorld access

Sorry, but you are a broker's worst nightmare ... and how to fix it

Investor seeking consolidation deals

5 Cautionary Tips for Dealing with Friends/Family Investors

CRM for the search

45,152 transactions are now available on Searchfunder for a limited time

Why Start a Search Fund?

Does Searchfunder need IBISWorld?

Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.

We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.