EBITDA Bridge

An EBITDA bridge is a financial reconciliation that explains the change in EBITDA between two periods, typically from pre-acquisition to post-acquisition, or from one fiscal year to the next. PE firms use EBITDA bridges to isolate the impact of specific operational changes, cost reductions, revenue growth, and one-time items on portfolio company performance. Common line items include pricing changes, volume/mix effects, headcount changes, procurement savings, and non-recurring costs. The bridge is a standard tool in board reporting and value creation tracking across a PE portfolio.