Add-Backs

DefinitionAdd-backs are expenses returned to a business’s profit to show what a new owner would actually earn. Legitimate add-backs include the current owner’s salary, personal costs run through the business, and genuine one-time expenses. Add-backs are also where most valuations quietly fall apart: a personal vehicle claimed as fully business, or a "one-time" cost that recurs every year, can move the price by a multiple of itself. On ExitToBuy, every add-back is checked against the underlying records before a listing goes live.