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-8.87154009935318E-05 6.65365507452749E-05 -7.80695528743231E-05 0.000765170333569968 0.000510113555713312 0.000510113555713312 0.000510113555713312 0.000510113555713312
Stock impact report

EBITDA adjustments are getting ridiculous [Yahoo! Finance]

S&P Global Inc. (SPGI) 
Last s&p global inc. earnings: 4/28 07:10 am Check Earnings Report
US:NYSE Investor Relations: stocktwits.com/symbol/s
Company Research Source: Yahoo! Finance
In M&A deals, companies will often strip out or add back one-time, non-cash expenses, such as restructuring costs, transaction-related fees and excessive owner compensation, making it easier to benchmark the long-term profitability of a business against its peers. In recent years, however, the interpretation of what counts as a one-time charge has expanded well beyond historical norms. Some say that sellers and investment bankers are engineering aggressive EBITDA adjustments to inflate corporate valuations and for no other reason. Recent data from S&P Global suggests this is more than just a hunch. The ratings agency concluded that the definition of EBITDA in private equity deals is becoming “increasingly inconsistent and inflated.” In an analysis of 700 M&A and leveraged buyout deals, S&P found a direct correlation between the value of addbacks that a business tacks onto its EBITDA and the likelihood of it failing to pay down bank loans or private debt on schedule. The busin Show less Read more
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