1-Hour Program

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This One-Hour Briefing will help you effectively use EBITDA in your practice.  Earnings Before Interest Taxes and Depreciation, commonly called EBITDA, is a standard calculation in the modern financial world, but, like Latin, many lawyers have only an minimal understanding and may not feel comfortable using the calculation in practice.  It is accepted by courts and markets as a standard measure in finance and while many understand EBITDA to have a common definition (and calculation) it is not always defined the same way in everyone’s mind (or loan covenants).  EBITDA is always defined—and calculated—by the parties and is subject to manipulation and negotiation.  EBITDA has taken on a new importance with the changes in the tax law and limits on deductible interest.  Attention to what goes into the calculation will expose opportunities and protect your client when it is used.

Our panel will review the basics of how EBITDA is calculated, how it’s used, what it is and what it is not.  Specific segments will deal with using EBITDA in litigation and transaction practice.  Terry Lloyd, CPA, CFA of Finance Scholars Group, Giovanna A. Ferrari, Esq. of Seyfarth Shaw LLP, and Christopher A. Manion, Esq. of Blank Rome LLP will address topics including:

  • The basic EBITDA calculation
  • Whether EBITDA is a reliable proxy for actual cash flow profitability
  • Common adjustments to the standard EBITDA calculation
  • Typical borrower adjustments to the standard EBITDA calculation
  • Typical lender adjustments to the standard EBITDA calculation
  • Using EBITDA in transactions: due diligence
  • Using EBITDA in transactions: pricing the deal
  • Using EBITDA in transactions: negotiating credit facilities
  • Using EBITDA in litigation: measuring damages
  • Using EBITDA in litigation: explaining it to triers of fact
  • Practical methods for protecting your client in EBITDA transactions and disputes

Program Level:  Basic

Intended Audience:  In-house counsel, outside attorneys, accountants, finance, banking, and other allied financial professionals responsible for negotiating and applying financial provisions of agreements such as loan covenants

Prerequisites:  None

Advanced Preparation:  None 

Credit Details