Module I· Earnings Quality & Red FlagsAdvanced
Question
EBITDA add-backs: which are legitimate and which are questionable?
Answer
Legitimate add-backs are evidenced, non-recurring, and not required to operate the business. Questionable add-backs are recurring, speculative, or seller-specific optimism.
Deep diveShow more details
Synergies belong primarily in buyer upside, not seller adjusted EBITDA, unless already executed and visible in run-rate numbers.