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“Addbacks” are adjustments to the business’s profit & loss statement, to reflect the true return to owners, for sale purposes.  There is a delicate balance of discovery and inclusion, that does not leave “anything substantial on the table”, but also does not breach credibility, cause contention or roadblocks, or come across as “adding back the kitchen sink”

Subject to clear substantiation, some items that may be included in addbacks include :-

  • Owners wages, drawings, directors fees, dividends, salaries or alike (not including cash out)
  • Owners Superannuation
  • Interest paid on business loans
  • Borrowing and bank costs for those loans
  • Bookkeeping costs but not Accounting costs for compliance
  • Depreciation (but can be questioned where lease renewal terms require shopfits each time)
  • Donations – where it is a discretionary spend, not a rebate paid for BTS contracts or alike.
  • Equipment Leases where the items are to be paid out and sold unencumbered (eg. cars & copiers)
  • Personal expenses put through the business such as Income Insurance, personal cars, personal phones.
  • and other items only your Specialist Newsagency Broker can assist with.

Items that will reduce addbacks include sundry income items such as :-

  • FBT Employee Contributions
  • Interest Earned
  • Other Incomes (where it is not derived from the shop)
  • Goods for own Use

All addbacks & adjustments must be verifiable under a Due Diligence.

Evaluation, discovery and preparation are all part of our engaged Listing Service, so call us today.