How to argue EBITDA adjustments in due diligence and in TS interviews: the language, structure and evidence-based reasoning used by senior FDD professionals.
In Transaction Services, analysis without argument is incomplete. An EBITDA bridge is not just a list of numbers — it is a series of claims about the economic reality of a business. Each claim must be argued with evidence, logic and commercial reasoning. This is the language of FDD, and mastering it is what distinguishes senior practitioners from junior analysts.
Every accepted or rejected EBITDA adjustment should be articulated in the same three-part structure:
Item: Restructuring costs of €420k in FY0
Position: Accepted as a non-recurring adjustment, +€420k to EBITDA
Rationale: The restructuring relates to a headcount reduction programme approved by the board in March FY0, affecting 15 roles. We have reviewed the board resolution (Data Room reference: F.3.2), the individual redundancy agreements, and the payroll records confirming that the affected roles are no longer active. No similar restructuring has occurred in FY-2 or FY-1. We are satisfied that this is a genuine one-off item unlikely to recur.
This structure — describe, position, evidence — works in a written FDD report, a management Q&A session, and a TS interview case study.
When accepting an adjustment, the language signals confidence and evidence:
When rejecting a management add-back, the language must be direct but professional:
Avoid hedging language that suggests uncertainty ("we might" or "it seems possible"). FDD arguments are factual or they are not made.
The management Q&A is the oral equivalent of the written argument. Key principles:
In case study interviews, examiners deliberately include borderline adjustment items to test your reasoning:
The strong candidate does not just classify the item — they explain the classification with evidence-based logic.
The language of EBITDA argumentation is a professional skill that develops with practice. The best TS analysts are those who can defend a position under challenge, with clarity and evidence, every time.
The Transaction Services Interview Programme (€119.99, one-time) trains you to argue EBITDA adjustments with 150+ real examples and mock interview challenges. Start today.
Hundreds of candidates prepared their interviews with this programme. Those who landed the role have one thing in common: they worked the cases before walking into the room.
