Add-Backs Can Make or Break a Deal
March 26, 2025
by a professional in Cardiff, UK
One of the trickiest parts of financial diligence is getting comfortable with add-backs – especially in SMB acquisitions, where seller financials often include a mix of personal perks, “one-time” expenses, and creative adjustments.
If you take them at face value, you risk overpaying. But if you're too skeptical, you might miss out on a great deal.
We put together a practical breakdown of how to evaluate add-backs: what to look for, red flags to watch out for, and how they actually affect valuation and negotiations.
You can check it out here: Understanding Add-Backs and How They Impact a Deal
Would love to hear how others are approaching this – especially pre-LOI when financial visibility is still limited.
If you’re planning to acquire in 2025, we should talk! Feel free to book a quick intro call here: https://rapiddiligence.com/free-consultation/