Not every addback in a CIM holds up under closer scrutiny. Here are a few examples we’ve encountered in financial due diligence. 1. Hypothetical credit card rewards One seller included credit card rewards as additional income based on points they could have earned had they paid expenses by credit card instead of bank transfer. Potential rewards are not actual earnings. 2. Recurring expenses labeled as one-time Legal fees or consulting costs that appear every year are not necessarily non-recurring. In one SaaS engagement, a seller classified monthly payments to the same contractor over two years as one-time development costs. The pattern suggested recurring maintenance, and the seller ultimately accepted our adjustment. 3. Travel and meals without sufficient support Some sellers propose adding back travel and meals as personal expenses. The challenge is distinguishing personal spending from legitimate business costs, particularly when documentation is limited. 4. Adding back an asset purchase One seller wanted to add back a vehicle purchase because "cash had left the company's bank account". However, the vehicle was capitalized on the balance sheet, not recorded as a P&L expense. Cash outflows don't automatically reduce EBITDA. An addback needs more than a convincing explanation. It needs supporting evidence and a clear rationale for why the expense should be excluded from normalized earnings.