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I know the title isn't specific, but I read this clause. I have two people who read the math in two different ways. With all your math skills, how would you do the math on this clause?

"Two times the sum of (i) that Member's ownership interest multiplied by the EBITDA of the LLC for the calendar year preceding the Members's buy out (ii) plus the Member's ownership interest multiplied by the EBITDA of the LLC for the calendar year in which the Member's buy-out from the LLC occurs."

Is it...

A.) Preceding Year EBITDA + Current Year EBITDA x 2

B.) Preceding Year EBITDA x 2 + Current Year EBITDA

Thanks for any thoughts on this.

F. Miller
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  • Letting $I$ denote the member's ownership, and $E_i$ the EBITDA's in question I'd have said it was $2\times (I\times E_0+I\times E_1)=2I\times(E_0+E_1)$ Should say... I think this is fairly clear, but perhaps I am missing the ambiguity. – lulu Oct 20 '17 at 17:19
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    I see no ambiguity, it is two times the sum of the quantities (i), (ii). – copper.hat Oct 20 '17 at 17:25
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    To be clear: neither of the interpretations you give make sense to me. It is quite clear that you are after $2$ times some sum...neither of your interpretations have that form. – lulu Oct 20 '17 at 17:27
  • Thanks lulu for that! Yes, it is a position to get the highest buy out amount.

    I am a bit confused about how neither interpretations I have made don't make sense to you?

     – F. Miller Oct 20 '17 at 18:57

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