INSIDE THE TEMPLATE VAULT
Adjusted EBITDA bridge template for a business sale.
A buyer will question the earnings they are being asked to pay for. Reconcile reported EBITDA to your proposed adjusted figure, show both additions and deductions, and make the evidence behind each adjustment easy to follow.
Editable Google Sheets workbooks
Build a transparent profit bridge, not a longer list of optimistic add-backs.
- Three historic years plus a current-period label you can set
- Reported-profit-to-EBITDA bridge and separate add-backs and deductions
- Full and conservative adjusted EBITDA cases
- Category summaries, evidence references and a related adjustment register
A simple adjusted EBITDA bridge
Fictional figures, in one consistent currency, chosen to explain the arithmetic. This is a simplified example, not output from your business or a valuation.
Swipe across the table to see every column.
| Illustrative line item | Amount | What needs checking |
|---|---|---|
| Reported EBITDA | 250,000 | Reconcile to the underlying accounts |
| Proposed exceptional legal expense | +15,000 | Evidence the cost and whether it is genuinely non-recurring |
| Additional management replacement cost | −25,000 | Assess the market-rate cost a buyer would need to incur |
| Proposed adjusted EBITDA | 240,000 | A discussion figure, not an adjustment accepted by a buyer |
What does the bridge show?
The workbook starts from reported figures and calculates EBITDA before showing proposed adjustments. Each positive add-back or negative deduction needs an explanation and supporting evidence. The related Add-Backs Register holds the detail behind the summary.
The full case shows the proposed adjustments. A conservative case lets you distinguish those you have marked as sufficiently evidenced to include. Neither label means the buyer or their advisers have accepted the treatment.
Normalisation can reduce earnings too
A founder’s salary is not automatically an add-back. If the business needs someone to do that work after the sale, consider the realistic replacement cost. Related-party rent and unusual income may also require downward adjustments.
Do not count the same item twice or treat routine costs as exceptional because they are inconvenient. Keep forecasts clearly labelled and make the treatment consistent across the bridge, register and buyer materials.
Adjusted EBITDA is not your sale proceeds
EBITDA does not capture every cash requirement. Working capital, capital expenditure, debt, tax and the deal structure still matter. A higher proposed EBITDA figure does not guarantee a higher offer or more cash at completion.
Use the workbook to organise evidence and questions for your accountant and transaction advisers. It is not an audit, a quality-of-earnings report or a formal business valuation.
From template to working document
- 01Make your Google Sheets copies of the bridge and related register.
- 02Set the currency and periods, then enter reconciled reported figures.
- 03Record each adjustment, its sign, category and evidence reference.
- 04Compare the full and conservative cases and discuss the assumptions with your advisers.
Before you choose
Is there a native Excel download?
The delivered editable workflow uses Google Sheets. The public example is not a downloadable Excel model. If you export a copy, check formulas and formatting before relying on it.
Are add-backs automatically accepted by buyers?
No. Each proposed adjustment needs evidence and transaction-specific review. A buyer may challenge or reject it.
Does this include the live EBITDA tool?
These are editable Vault workbooks. The separate Toolkit has interactive tools and different access. Choose the product that matches how you want to work.
Prepare the documents, not just the idea of a sale.
Explore the complete library, its formats and what is included before you buy. These resources support preparation; they do not replace legal, tax or financial advice.
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