What red flags should we watch for when evaluating add-backs?
- Lack of Documentation: Claims without clear records or receipts.
- Recurring Expenses Disguised as One-Time: Expenses like annual marketing campaigns presented as “non-recurring.”
- Overly Optimistic Projections: Add-backs tied to speculative synergies or future savings.
- Double Counting: Adjustments already captured elsewhere in the financials.
- Broad Categories: Add-backs that lump various expenses together without sufficient detail.
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