Fig. 01 · Glossary
Normalized EBITDA
Also known as Adjusted EBITDA, Sustainable EBITDA
Definition
Normalized EBITDA is reported EBITDA adjusted to reflect a buyer's view of sustainable operating earnings. It includes accepted add-backs and deductions for items that distort performance, such as one-time costs, owner compensation, non-market expenses, revenue-recognition issues, and recurring costs misclassified as exceptional.
Normalized EBITDA is where seller story meets buyer skepticism. Every adjustment needs support.
The strongest sellers do not wait for the buyer to normalize EBITDA. They run the analysis before LOI, fix what can be fixed, and document what cannot.
Human Renaissance glossary · operator-grade definitions · Research methodology
