Bad add backs kill deals.
I reviewed an IM stating £430k EBITDA.
The statutory accounts showed losses of £300–400k.
The difference?
“Add backs.”
Owner salary added back — with no replacement cost.
Depreciation treated as optional.Bad debts ignored.
Lenders care about declared profit — not adjusted fantasy.
Quality of earnings is non-negotiable.
🎥 Full breakdown on YouTube.