Adjusted EBITDA added back £180k. The buyer read it as a job description.

The same adjustments that make owner earnings look larger also tell a buyer exactly how much of the business walks out with you.

By Steve 5 min read
Abstract bridge artwork for Adjusted EBITDA added back £180k. The buyer read it as a job description.

Every set of seller-adjusted accounts tells two stories at once. The first is arithmetic: the owner’s salary is above market, the car is on the business, a family member is on the payroll, last year’s legal fees were one-off. Add it all back and reported profit becomes something larger and, arguably, more honest: the earnings a dispassionate operator would actually see. The second story is structural, and it is being read at the same time. Each add-back is a line item describing something the owner does, pays for, or decides.…

Keep reading for free

Create an account to read the rest.

The whole library is free. No card, no subscription, no trial that quietly ends. An account simply lets us know who we are writing for, and opens every article from here on.

  • Every article, in full, at no cost
  • New articles published every weekday
  • Takes about twenty seconds
Create a free account I already have one

Free means free. We will not charge you for the library, and you can read as much of it as you like.

Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

More on Growth strategy

Scroll to Top