EBITDA Adjustments: From CIM to Reality, Reconciled in Minutes

Every seller has a story and most of them start with “$2M in EBITDA.” But how much of that is actually real?

With the EBITDA Adjustments tool on Dealsage, you can quickly reconcile reported earnings and audit the adjustments, without exporting to Excel or getting lost in a CIM.

Step 1: Edit the Adjustment Table

Dealsage pulls from your CIM or uploaded docs to build an initial reconciliation breaking down:

• Mandatory adjustments (interest, depreciation, etc.)

• Discretionary add-backs (travel, meals, owner salary, etc.)

You’ll see where numbers came from (with direct links to the PDF pages), spot errors like year mismatches, and resolve any discrepancies with one click. Every line is editable. You can add rows, adjust signs, or update misclassified expenses.

Want to know why Dealsage categorized something the way it did? Click View Reasoning to see the thought process.

Step 2: Audit Add-Backs Like a Pro

Once the numbers match the CIM, shift into audit mode:

• Get commentary on each add-back

• See what should or shouldn’t be accepted

• Compare seller’s EBITDA vs. your buyer-adjusted EBITDA

You can also layer in buyer-specific adjustments (e.g., hiring a GM) and bank-specific adjustments (e.g., removing capex or taxes).

And finally, generate your Bank EBITDA, which becomes your basis for modeling and valuation.