Covenants calculated from the books, not from the slide deck
€6m EBITDA gap between the lender report and the books. Leverage 3.71x, not 3.60x.
EBITDA gap
between lender report and booksleverage
calculated from the booksentities
in one calculationChallenge
The covenant calculation for the lenders was put together in a slide deck, from the figures of 20 entities.
Nobody checked line by line whether the EBITDA in the deck matched the books. With leverage close to the limit, every million counts.
Solution with Arc
Arc calculates EBITDA and leverage straight from the postings of all 20 entities, on the definition in the loan agreement.
Arc shows every difference to the lender report with the items that explain it.
Result
Arc found a €6m EBITDA gap between the lender report and the books.
Calculated from the books, leverage was 3.71x instead of 3.60x. The team could resolve it before the bank did.
How it runs with Arc
Your ERP has the data.
Arc does the work.
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