Johnston Business Sales Pty Ltd
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Businesses for sale pg 2
Johnston Business Sales Pty Ltd
Home
Businesses For Sale
Recent Sales
Testimonials
Buyers information page
Our team
Businesses for sale pg 2
More
  • Home
  • Businesses For Sale
  • Recent Sales
  • Testimonials
  • Buyers information page
  • Our team
  • Businesses for sale pg 2
  • Home
  • Businesses For Sale
  • Recent Sales
  • Testimonials
  • Buyers information page
  • Our team
  • Businesses for sale pg 2

Add backs - what are they?

Additional Information

 

Adjustment Schedule/Add Backs

General definition: 

Adjusted net profits are usually before owner’s salary, items such as tax, interest on finance and depreciation and standard recognised add back items – see below defination 

“It is normal market practice to establish the profitability of a business prior to any financing charges, any items of expenditure considered to be non-operating, non-recurring and/or abnormal in nature or of particular benefit to the Directors/Owners/Partners”

A separate financial schedule shows an adjustment schedule which demonstrates some of the benefits the business provides to Directors / Owners, the adjustment schedule should be read in conjunction with the  Trading and Profit & Loss statements.

FAQ

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