Earnings Adjustments are a common concept encountered in most private company M&A or investment deals.
✅ If you’re a buyer or an investor, it makes sense to diligence these adjustments closely
This impacts not only the price you’d pay but also how you’d want the business to run after the deal is closed.
✅If you’re a seller or a company looking to raise money, consider spending the time to do a deep dive into the company financials with your advisor.
Selecting and quantifying these adjustments drives a lot of value.
Not doing this right can mean you leave enormous amounts of value on the table.
✅ Please read the attached guide to better understand this concept.