Valuation Terms

Add-Backs

Expenses added back to profit because they may not continue after the sale, such as a one-time legal bill or personal expenses run through the business. Why it matters: Strong add-backs can increase value, while weak or unsupported add-backs can damage trust and lead buyers to reduce price.

Related terms

Lead

A possible customer. Why it matters: This gives owners a clearer way to understand buyer questions, advisor comments, and negotiation tradeoffs during a sale process.

More from Valuation Terms

Adjusted EBITDA CapEx Cash Flow EBITDA Enterprise Value Equity Value Free Cash Flow Gross Margin Gross Profit Multiple Net Income Net Working Capital

Browse all 236 terms in the knowledge bank →

Get a real advisor on your team

Looking up terms is helpful. Having a vetted advisor who explains them in the context of your specific business is better.

Plan your exit Back to knowledge bank