Valuation & Finance
EBITDA Add-backs / Normalization
Adjustments to reported EBITDA that strip out non-recurring, personal, or non-business expenses — sellers should document these proactively to defend valuation.
Seller Example
Promoter of an Ahmedabad chemicals manufacturer prepares a certified add-back schedule (one-time CSR spend, non-business travel) worth ₹1.2 Cr, backed by invoices and board minutes, defending the higher ₹8 Cr EBITDA figure against the buyer's attempt to disallow the add-backs and cut valuation by ₹6 Cr.