Bad debts as an add-back when calculation EBITDA & SDE?

March 25, 2022
by a searcher from The University of North Carolina at Chapel Hill - Kenan-Flagler Business School in Toronto, ON, Canada
Hello community,
Any thoughts on bad debts that are added back to the P&L by sellers to calculate EBITDA and SDE? I believe that's not right since bad debts do reflect an operational reality of the business. What have you seen on the market? What is normally accepted?
Thanks
in Highlands Ranch, CO, USA
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA