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Crash Course on Add Backs

dealers podcast

In today’s rapidly evolving economy, it’s more important than ever to make sure you’re maximizing the value of your business when you’re ready to sell. Add backs are one crucial way to make that possible.

Today, we’re talking about the value of add backs, what’s realistic, what buyers are pushing back on, and what concessions they’re willing to make. We cover exactly what an add back is and what it isn’t, how aggressive we should be with them, and why we use them.

In the first episode of The Deal Closers’ second season, Izach and Nate talk through some examples of when add backs are used, some of their benefits, and some of their own advice regarding the expense. Tune in and learn why it’s so important as a seller to understand add backs, the pros and cons involved in the decision, and the important role that brokers can play.

In this episode, you will learn:

  • What exactly an add back is (01:06)
  • A live example of an add back (01:53)
  • Some reasons add backs can be beneficial (06:20)
  • What’s considered a negative add back (08:30)
  • The broker’s role in the add back process (09:35)
  • Non-standard add back scenarios (13:33)
  • How the complexity of the deal can affect your timeline (16:18)
  • Some of our personal advice regarding add backs (17:58)


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