Latest / The Buyer & Seller Podcast with Fexingo: Business Brokers, Exits, and Private Sales Explained
Why EBITDA Addbacks Can Inflate a Business Sale Price
In this episode of The Buyer & Seller Podcast, Lucas and Luna dig into EBITDA addbacks — the accounting adjustments sellers use to dress up earnings before a sale. Using the example of a mid-sized commercial HVAC services company that sold for 11 times adjusted EBITDA, they walk through which addbacks are legitimate (owner's salary, one-time legal fees) and which ones are red flags for buyers (personal travel, family payroll, discretionary repairs). They also explain how buyer-side due diligence caught a $400,000 addback that didn't hold up, shaving a full turn off the multiple. If…
The skinny
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