EBITDA Bridge

Also known as: EBITDA Walk, Adjusted EBITDA Bridge

An EBITDA bridge is a step-by-step reconciliation from a company’s reported EBITDA to adjusted EBITDA, showing each add-back and adjustment in between.

An EBITDA bridge (also called an EBITDA walk) is a reconciliation that starts at reported EBITDA and adds or subtracts each adjustment until it arrives at adjusted EBITDA. It is one of the most important exhibits in any quality of earnings report.

Why buyers rely on it

The bridge makes the adjustments transparent. Instead of a single adjusted number, a buyer sees exactly which items were added back, how large each one is, and whether it is credible. A clean bridge builds confidence, while a bridge dominated by vague or one-time items invites scrutiny.

What it feeds

The adjusted EBITDA at the end of the bridge is the figure most often multiplied by the EV/EBITDA multiple to set the purchase price, so every dollar in the bridge can translate into many dollars of value.

Related terms

EBITDA Add-Backs

EBITDA add-backs are one-time, non-recurring, or owner-specific expenses added back to reported EBITDA to show the company’s true ongoing earning power.

Pro Forma Adjustments

Pro forma adjustments restate historical results to reflect the business as it will operate going forward, covering run-rate changes, acquisitions, and other standard normalizations.

EV/EBITDA Multiple

The EV/EBITDA multiple divides enterprise value by EBITDA, showing how many dollars investors pay for each dollar of operating profit, independent of capital structure.

Quality of Earnings

A Quality of Earnings (QoE) analysis assesses how sustainable and accurate a company’s reported earnings are, separating durable operating profit from one-time or accounting-driven boosts.

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