Standard addbacks

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August 28, 2023

by a searcher in Brentwood, TN, USA

Hi

Evalauting a print business, would like to get a view or guidance on what's an acceptable addback and what is not?

Current owner is including a marketing spend which didn't deliver result as an addback, this is not acceptable for me but would like to get a view.

Regards
Ahsan

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commentor profile
Reply by a searcher
in Illinois, USA
Two questions : Is this the only marketing dollars they have ? or was this some experiment that they ran and then stopped because they didn't see what they wanted to see. If it is online marketing expense, that is not an option any more.. so hard to think it as add-back. If it is website redesign or investment into blogs or influence marketing. as an experiment, might be considered as discretionary IMO.
Second you should be interested in knowing why it didn't work ? if there is a problem, it is possible you might run into it . I would dig further into this.
commentor profile
Reply by a searcher
in Charlotte, NC, USA
If the marketing spend were non-recurring in nature for that business, then adding it back could make sense. However, marketing spend on the surface sounds like something that would be necessary to run and grow the business.
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