Maybe. That’s typically done via agreement on the specific adjustments determined based upon either a sell-side or buy-side Q of E, which drives the valuation and ultimate purchase price
Specifying a clear framework for acceptable add-backs whether as stated in the LOI or agreed via the Q of E reduces ambiguity and potential disputes. This ensures the buyer and seller align in the treatment of identified adjustments and their impact on valuation prior to executing the transaction.
