Adjusted EBITDA (EBITDA normalisé) is the Earnings Before Interest, Taxes, Depreciation and Amortisation restated to remove non-recurring, exceptional or non-arm's length items — producing a figure representative of sustainable, recurring operational performance. The adjustments bridge the gap between as-reported EBITDA and the economic earnings base used for business valuation and transaction pricing. Standard adjustments include: adding back restructuring charges, removing non-recurring income or expense, normalising above-market owner remuneration and excluding non-arm's length related party costs. The quality of earnings review is the process through which adjusted EBITDA is constructed.

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Example: a Swiss SME reports accounting EBITDA of CHF 2.7 million. Adjustments: +CHF 200,000 above-market owner salary restatement, +CHF 180,000 non-recurring restructuring charges, -CHF 120,000 below-market intragroup rent. Adjusted EBITDA = CHF 2.96 million. Applied at an 8.0x multiple, the CHF 260,000 normalisation gap generates CHF 2.1 million of additional valuation — illustrating why adjusted EBITDA construction is the most economically significant output of every due diligence.

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Hectelion constructs adjusted EBITDA with individual documentation of every restatement item, producing conclusions defensible to counterparties, auditors and tax authorities.