# Recast

Redrawing the financials so the profit a buyer keeps becomes visible.

This is the number the whole price is built on, so a careful buyer reproduces it from the tax returns rather than accepting the seller's spreadsheet, and the gap between the two versions is the negotiation. Work line by line and ask of every adjustment whether the cost genuinely disappears when the owner does. A vehicle the business still needs and a family member who does real work both get added back routinely, and neither should be. Rent set below market is the opposite trap: it has to come back up to what an unrelated landlord would charge.

In numbers: A P&L showing $330,000 of net income recasts to $520,000 of [SDE](https://searchspheresource.com/glossary/sde) after adding back the owner's $150,000 salary, $25,000 of personal vehicle costs, and a $15,000 one-time lawsuit settlement; every [add-back](https://searchspheresource.com/glossary/add-backs) must survive the question 'will this cost exist for the buyer?'

Source: https://searchspheresource.com/glossary/recast
Not dated: A definition is editorial: what a term means, why it matters, and an example. None of it reads a source that can go stale, so there is no date to take and a stamped one would be the build time wearing a costume.

Site index for machines: https://searchspheresource.com/llms.txt