What Do I Do for Addbacks if The Departing Owner Does Not Need to be Replaced?

In the scenario when a firm is being sold to a group that will not be replacing the primary owner(s), then 100% of that individual's W2 compensation, health/insurance benefits, and key man insurance costs can be added back.

In the scenario when a firm is being sold to a group that will not be replacing the primary owner(s), then 100% of that individual's W2 compensation, health/insurance benefits, and key man insurance costs can be added back.

Example, if the departing owner's W2 and Benefits total equals $300,000, in this instance you would add $300,000 to the Owners W2 and Benefits Addback field.