Latest / The Acquisition Talk with Fexingo: Mergers, Buyouts, and Business Sales for Operators
The EBITDA Addback Trap That Cost a Seller 11 Million
In this episode, Lucas and Luna dissect a specific seller-side M&A failure: an $11 million loss caused by an over-aggressive EBITDA addback. They walk through a real-world deal where a manufacturing company's owner justified aggressive addbacks for owner perks and one-time costs, only to have the buyer's quality-of-earnings audit unravel them days before closing. The hosts explain how addbacks are negotiated, why they can trigger working capital adjustments and earnout clawbacks, and the difference between defensible addbacks and financial fiction. They also discuss the role of the…
The skinny
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