Leverage Finance
Addback Levels Remain High Despite Some Easing
Published article
Primary contact
Content visualization contacts
Olen Honeyman
olen.honeyman@spglobal.com
Steve H Wilkinson
steve.wilkinson@spglobal.com
Minesh Patel
minesh.patel@spglobal.com
Deegant Pandya
deegant.pandya@spglobal.com
Bushra Dawawala
bushra.dawawala@spglobal.com
Source: S&P Global Ratings. As of Apr. 16, 2025.
Overview
Detailed view
Key takeaways
Eight-year average company projected vs. net reported EBITDA,
2015-2021 (%)
Overview
- Our EBITDA addback study continues to reveal a clear correlation between the magnitude of addbacks at deal inception and the severity of management projection misses.
2019 data
- Our latest study indicates a decrease in addbacks as a percentage of management-adjusted EBITDA for the most recent two cohorts (transactions originated in 2022 and 2023), which may signal an encouraging trend. After peaking at 32% of management-projected EBITDA in 2021, addbacks decreased to 26% in 2023, reflecting a 19% reduction.
Transactions originated, 2015-2021 (%)
Company projected vs. actual reported EBITDA
Eight-year average addback types, 2015-2021 (%)
2019 data
2019 data
2021
2020
2018
2017
2016
2015
2019
Cohort
Source: S&P Global Ratings. As of Apr. 16, 2025.