Why it matters at exit
Buyers value a business on a multiple of its normalised earnings, so every euro you can defensibly add back is multiplied by the deal multiple and flows straight into the headline price. On a business earning EUR 800,000, sold at a five times multiple, a EUR 100,000 adjustment that survives scrutiny is worth EUR 500,000 in value. The catch is evidence: during due diligence a buyer runs a quality of earnings review that tests each adjustment, and anything you cannot support with invoices, contracts or payroll records is removed, often reducing the price late in the process. Working out your adjustments early, and keeping the paperwork that proves them, is what turns a plausible number into one a buyer will actually pay for.