# What are add-backs, and which ones count? · Horizon Answers

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# What are add-backs, and which ones count?

Short answer

Add-backs are costs added back to profit because a new owner would not have them. Buyers accept the ones you can document and reject the rest.

## What to know

-   Common ones: owner salary above market, personal expenses, one-time legal or moving costs.
-   Every add-back needs a paper trail.
-   Aggressive add-backs erode trust and get cut in diligence.

## What to do next

1.  1List each add-back with the amount and reason.
2.  2Attach support like invoices or payroll records.
3.  3Have your accountant review the list.

Last reviewed September 2026 by the Horizon team. General information, not legal, tax or financial advice.

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