Impact of Excessive & Unjustified Add-Backs on the Deal
In this compelling video, James F. Davidson, CPA, CFF, CPA, CFE, CM&AA, CM&AP, Founder & President of Avant® Advisory Group, explores the risks of unwarranted and excessive add-backs in M&A deals. He describes how inflated EBITDA may result in unrealistic seller expectations, diminish trust in negotiations, and potentially sabotage deals.
Jim emphasizes the significance of objectivity, clarity, and precision when presenting EBITDA adjustments, noting their effect on valuation and on other intangibles such as a buyer’s trust. Discover how excessive and inappropriate proposed EBITDA add-backs identified during a financial due diligence / Q of E assessment may jeopardize negotiations and crater a deal. Watch the video to listen to Jim Davidson’s professional perspective on effectively assessing add-backs in M&A transactions.
