What are addbacks?

Often when we sell businesses, we as agents or preferably through Accountants, are required to quantify a number of "Add Backs" for a property to bring the accounts back to a format that can be qualified and measured against comparable property.

Most people in business minimise through their accountants the operational profits of a business and optimise the costs of operating the business to have amend result of minimal taxation.

Addbacks take a property back the true profit/loss position of the business, with personal costs such as borrowings interest, depreciation, financing costs etc that are not related to the business removed.

Once we have a confidentiality agreement in place, we are happy to provide the financial details and addbacks schedule for any property that we may have available for the market unless particular circumstances prevail.