Start with consistency, not optimism
Owners often jump straight to valuation multiples before pressure-testing the earnings number itself. That is backward. Serious buyers will first ask whether reported EBITDA reflects repeatable operating performance.
A disciplined preparation process starts by identifying one-time items, owner-specific expenses, and irregular costs that can be clearly documented without stretching credibility.
Separate true normalization from narrative inflation
Reasonable add-backs can help present the business accurately. Weak add-backs create distrust. If a cost has been recurring for multiple years, buyers will usually treat it as part of the operating model rather than an adjustment.
Prepare concise support for every normalization item. If the logic cannot be explained in a few clear sentences with evidence, it likely should not anchor the story.
Use EBITDA as a readiness tool
Even before a sale process begins, EBITDA planning exposes where financial controls, reporting cadence, or expense allocation may need work. Owners who treat this as preparation rather than packaging usually present better and negotiate from a stronger position.