SDE Add-Back Normalization & Proof-of-Cash Control Tower – Excel XLSX

BENEFITS OF THIS DOWNLOADABLE EXCEL DOCUMENT

1. Document accepted add-backs and preserve rejected-claim reasons.
2. Trace expense accruals, payments and bank withdrawal differences.
3. Present normalized SDE and outstanding review conditions together.

DUE DILIGENCE EXCEL DESCRIPTION

SDE Add-Back Normalization & Proof-of-Cash Control Tower is an Excel template (XLSX) with a supplemental Zip archive file document available for immediate download upon purchase.

Seller earnings claims need a documented bridge from reported results to accepted adjustments. The SDE Add-Back Normalization and Proof-of-Cash Control Tower provides an Excel workspace for finance teams, acquisition analysts and business owners preparing an earnings review. Six connected worksheets keep source records, claim decisions, cash differences and executive reporting in a single file.

The normalization workflow compares seller claims with verified amounts across owner compensation, personal expenses, non-recurring legal or professional costs, and facility adjustments. Documentation, reviewer attribution, period alignment and source references support each decision. Unsupported amounts remain excluded, signed facility adjustments can reduce earnings, and rejected claims retain a review trail. Duplicate source use and attempts to reclaim amounts already included in EBITDA are controlled.

Cash Reconciliation follows the expense and disbursement side of the records. Reported profit is connected to expense components, general ledger payments and bank withdrawals through separate reconciliation steps. Accruals, noncash items and outstanding payments remain visible instead of being hidden in a balancing plug. This scope does not establish cash receipts or opening and closing bank balances.

The Executive Summary presents unadjusted EBITDA, normalized seller discretionary earnings, the positive-amount add-back acceptance rate and cash reconciliation results. Native charts summarize the earnings bridge and disbursement movement. Source Integrity brings together review conditions and reconciliation differences so unresolved exceptions remain visible before sign-off.

The included illustrative USD case contains 1,200 distinct general ledger transactions and 82 add-back claims. It demonstrates normalized SDE of $2,317,449.32 and a 96.3% positive-amount acceptance rate; these are example outputs, not promised customer results. The workbook and sample CSV contain no customer records.

The enterprise download includes the editable Excel workbook, sample CSV, Master Implementation Guide, Quick Start Guide and Cutover Sign-Off Template. Editable inputs use a pale yellow fill. The guides explain source preparation, review responsibilities and controlled cutover. Flevy supplies the workbook with the three guides as separate supporting documentation.

The model uses USD and a four-decimal input basis. Different record counts require coordinated extension of source tables, formulas and integrity checks. Native Excel is the verified calculation environment. This preparation tool does not provide an independent quality-of-earnings opinion, valuation, lender approval or audit assurance. Professional judgment and source substantiation remain essential.

Source: Best Practices in Due Diligence, Valuation Excel: SDE Add-Back Normalization & Proof-of-Cash Control Tower Excel (XLSX) Spreadsheet, Luke A.