Recasting
Restating the seller’s financials so a buyer and lender can see ongoing earning power, usually via add-backs.
Last updated September 5, 2026
Recasting (or recasting the P&L) produces the SDE or normalized earnings used in the offering. It should be reconcilable to tax returns and bookkeeping, with each add-back listed. Recasting is a presentation step, not proof that cash will appear in the buyer’s account. Aggressive recasts are a common reason deals fail lender underwriting.