Glossary
With over 200 terms in both English and French, our M&A Dictionary is designed to help you better understand the key words and concepts related to the sale oe purchase of a business in Canada.
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Add-backs
« Back to Glossary IndexCategory: Business Valuation
When performing a business valuation, add-backs are financial adjustments made to a company’s financial statements to reflect its true earnings. They are often used to calculate adjusted EBITDA and/or Seller’s Discretionary Earnings. Add-backs reflect discretionary, irregular, and one-off expenses which may be considered optional and not required for the normal operation of the business. Calculating add-backs helps buyers understand the true cash-flow of the business, and therefore provide a more accurate value of the company.
« Back to Glossary IndexSynonyms:
Adjustments
French Translation: