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Earnings Quality

Reconcile earnings, add-backs, revenue quality, working papers, and accounting questions before diligence. The current library begins with How to build an EBITDA add-back schedule a buyer can review and How to calculate SDE without losing the trail. Choose the guide closest to the document or decision on your desk; the individual page contains the sources, examples, and limits.

Topic index2 guidesUpdated Jul 26, 2026Browse this topic ↓
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A source-supported amount can still have an open treatment question after recurrence, offsets, and future operating costs are considered.NextGen Seller original data visualization

NextGen Seller original data visualization
Start with this guideValuationGuideJul 21, 2026

EBITDA Add-Backs: How to Build a Defensible Schedule

Learn how to document EBITDA add-backs, test recurrence and offsets, account for replacement costs, and prepare a clear normalization schedule for buyer review.

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  1. 01ValuationResearch briefHow to calculate SDE without losing the trailBuild seller's discretionary earnings from one profit line, document each adjustment, catch missing offsets, and reverse-check the result.→
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