SDE, EBITDA, and the same fight
On a small owner-operated file the recast is often SDE. On a larger file it is adjusted EBITDA. SDE versus EBITDA is the fork. Quality of earnings is the buyer-paid test. A CIM schedule is not that test.
BizBuySell’s manufacturing median remains 2.75x SDE (Source: BizBuySell). A $40,000 fake add-back on that print is a six-figure enterprise-value fight, not rounding. SBA 7(a) still caps at $5 million (Source: SBA). Lenders will challenge the schedule.
One schedule, one backup binder, and a replacement-wage line a buyer can hire to. Do not bury personal vehicles in shop supplies. Do not add future tariff givebacks. Do not add synergies. A QoE will test whether the run-rate depends on dated items such as isolated PPP-era noise. On larger EBITDA files, expect the buyer to pay for that test.
How it works still wants the backup binder. The add-backs owner is the process home. Quality of earnings is the buyer-paid test. This page stays on the recast-base noun. Jason Taken does not certify a QoE.
What dies on contact
Unfunded spindle rebuilds called add-backs, inventory step-ups without a physical, recurring “one-time” costs, and “I could hire someone for half” with no market comp. IBBA Pulse Q1 2026 said 83% of >$5 million deals had three or more offers (Source: IBBA Pulse). A sloppy recast is how you lose that process.
One schedule, one backup binder, and a replacement-wage line a buyer can hire to. Do not bury personal vehicles in shop supplies. Do not add future tariff givebacks. Do not add synergies. A QoE will test whether the run-rate depends on dated items. On larger EBITDA files, expect the buyer to pay for that test. A rejected add-back is an enterprise-value fight, not rounding. A CIM recast is not a QoE.
How it works still wants the backup binder. FAQ owns the questions. The add-backs owner is the process home. Jason Taken does not certify a QoE.
How to present the recast
One schedule, one backup binder, and a replacement-wage line that a buyer can hire to. Do not bury personal vehicles in “shop supplies.”
| Item | Lives? | Dies? |
|---|---|---|
| Documented excess owner pay | Often | If no market comp |
| Isolated flood / move / lawsuit | Often | If it repeats every year |
| Deferred capex | Never as an add-back | Always a cash chip |
What survives a quality of earnings?
Documented excess owner pay above a market replacement, clearly personal vehicles or travel, and isolated one-time items that will not repeat. Binders beat stories. Unfunded maintenance, inventory step-ups without a physical, and recurring one-time costs die. Synergies are the buyer’s. A CIM recast is not a QoE. On files around 2 million-plus of EBITDA, expect a buyer-paid QoE earlier if the schedule is aggressive.
A rejected 200,000 add-back on a 5.5x 1 to 3 million EBITDA plastics file is a 1.1 million enterprise-value fight. How it works still wants the backup binder before anyone exclusive. FAQ owns the questions. The glossary hands you to the add-backs owner, then to a confidential intro call. Jason Taken is a business broker. He does not certify a QoE.
If the add-back schedule arrived without invoices, stop. The schedule is a wish list until the binder exists. A QoE will ask for the same paper. Give it once, early, and keep the recast honest. The add-backs owner page names what dies on contact.
A replacement wage that assumes a GM “you can hire for half” with no posting, no offer, and no market comp will die in the first QoE meeting. Use a number a buyer can actually hire. BLS OEWS medians are a start, not a finish. The add-backs owner names what lives and what dies. This page stays on the recast base. A CIM schedule without a binder is a wish list.
If the binder is thinner than the schedule, the schedule is the wish and the binder is the file. Bring the binder. Leave the wish list at home.
What this page will not do
It will not certify a QoE. Jason Taken is a business broker. The glossary sends you to the owner. After the noun is straight, book a confidential intro call.