PRIVATE-EQUITY-BASICS5 MIN READ
The CEO Defends the Addback
Challenge EBITDA addbacks by asking for recurrence, evidence, and cash impact.
hook-stats dialogue-coach Dana D Founder CEO 1 Recurrence 2 Evidence 3 Cash impact Management meeting 20 sec The addback Dana says: "The $4 million marketing spend was unusual. Add it back and our EBITDA is $28 million, not $24 million." At 9.0x EBITDA, the addback can move value by $36 million. $4M proposed addback
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