Tool
Quality of Earnings Adjusted EBITDA Calculator
Normalize reported EBITDA for quality of earnings add-backs, deductions, pro forma costs, QoE haircuts, valuation multiples, debt service coverage, and bankable cash flow.
Use adjusted EBITDA before trusting a purchase multiple
Quality of earnings work can change the EBITDA a buyer, lender, or seller uses for valuation and financing. A deal that looks attractive on reported EBITDA can fail after owner add-backs, one-time items, pro forma payroll, non-recurring revenue, maintenance capex, customer concentration, and DSCR are normalized. Use this estimate with the business valuation calculator, business acquisition loan calculator, debt-free cash-free purchase price calculator, and SDE calculator.
This calculator is an estimate for planning and comparison only. It does not replace a quality of earnings report, CPA review, lender underwriting, tax advice, legal advice, customer concentration analysis, revenue recognition review, or purchase agreement diligence.