Disallowed Add-backs
The add-backs buyers refuse to accept — and how they cost you more than the line item.
Disallowed add-backs are the ones the buyer crosses out when they rebuild your earnings. Some are crossed out because they're not actually one-time (the "one-time" marketing campaign that happens every year). Some because they're not really discretionary (the rent on the building you own personally, charged at market rate). Some because the buyer doesn't believe the documentation. And some because the buyer just doesn't think a future owner would skip the expense — even if you do.
Disallowed add-backs are the ones the buyer crosses out when they rebuild your earnings — and the damage compounds beyond just the line item.
Once a buyer thinks you've stretched on one number, they discount everything else on the page.
Find out what a buyer would see in your business — before you talk to one.
The Exit Desk free assessment takes 2 minutes. If you'd rather see what a full report looks like first, read a sample.
