Start with a named source
Choose a defined period and record the net income shown on its income statement. Add interest, income taxes, depreciation, and amortization to show EBITDA. If you already have an EBITDA figure, note who prepared it and how it was calculated. Do not mix periods or count one expense twice.
The SEC describes EBITDA using net income as “earnings” and distinguishes a differently calculated measure with a label such as “Adjusted EBITDA.” For SEC-reporting companies, its guidance also calls for a reconciliation to the comparable GAAP measure. See SEC staff guidance, questions 103.01–103.02. Those disclosure rules concern public-company reporting; the traceable bridge is a useful discipline for a private business, not a claim that SEC filing rules govern your worksheet.
Keep proposals on their own lines
For each proposed adjustment, write the amount, period, description, and document that supports it. Show whether it raises or lowers the result. A one-time gain may require a negative adjustment, just as a qualifying unusual expense might be proposed as a positive one. The SEC warns that removing charges while leaving comparable gains can mislead in public non-GAAP reporting. See SEC staff guidance, question 100.03.
Make the result reviewable
Present reported net income, the four items added to reach EBITDA, the resulting EBITDA, and each proposed adjustment in that order. Keep the original statement and support beside the worksheet. The total is a working proposal; it does not certify sustainable earnings, buyer acceptance, or business value.
Educational discussion only. The cited SEC guidance applies to non-GAAP disclosure by SEC registrants; private transaction terms depend on the facts and the parties. This page provides no legal, tax, investment, or valuation advice.