It Is Usually Appropriate to Adjust the Financials Received from the Target

Essay

It is usually appropriate to adjust the financials received from the target firm to reflect any changes that you
as the new owner would make in order to create an adjusted EBITDA. Using the Excel spreadsheet entitled
"Adjusting Target Firm's Financials" on the CDROM accompanying this book, make at least two
adjustments to the target's hypothetical financials to determine the impact on the adjusted EBITDA. (Note:
The adjustments should be made in the section on the spreadsheet entitled "Adjustments to Target Firm's
Financials.") Explain your rationale for each adjustment.