How do you build a local-GAAP-to-IFRS bridge in a valuation?

A local-GAAP→IFRS bridge is critical when:

• Doing a DCF of a private mid-cap company (local-GAAP reporting) for a cross-border investor (IFRS expectation).
• Comparing multiples of a local-GAAP private company vs. IFRS public comps. Key adjustments: (a) Pensions: local-GAAP DBO (defined benefit obligation) at a constant 2.5–3.0% discount (a smoothed 10-year-average method); IFRS DBO at the current market yield. At low rates, the IFRS DBO can be 30–50% higher than local GAAP. (b) Leasing: local GAAP distinguishes operating/finance leases (often off-balance-sheet); IFRS 16 capitalizes ALL leases as a right-of-use asset + lease liability → net debt rises. (c) Goodwill: local GAAP amortizes on schedule (5 years standard), IFRS is impairment-testing only → higher EBITDA under IFRS. (d) Provisions: local GAAP more conservative (full risk premium), IFRS expected-value-based. (e) Capitalized internal work / R&D: IFRS capitalization tests, local GAAP stricter. Valuation workflow: local-GAAP EBITDA + IFRS 16 lease add-back + pension adjustments → IFRS-like EBITDA for multiple application.