If the firm is being sold to a group and the departing owner's role/ responsibilities can be assumed by someone with a lower salary.
If the firm is being sold to a group and the departing owner's role/responsibilities can be assumed by someone with a lower salary.
Example, if the departing owner's W2 and Benefits total equals $300,000, but they can be replaced with an employee that earns $125,000 you would add back the difference - or $175,000 - to the Owners W2 and Benefits Addback field.