Show the starting number
Begin with a clearly labelled reporting period and a reconciliation to the accounts or management information. State whether the analysis uses historical results, a forecast or another agreed measure. If the starting figures differ between parties, resolve or explain that difference before comparing adjustments.
Give every adjustment its own row
For each proposed one-off cost or owner-related item, record the amount, accounting period, supporting document, reason for adjustment and any ongoing replacement cost. Keep disputed items visible rather than burying them in a net total. This makes the argument reviewable by the advisers and the person commissioning the work.
Include the cost of replacing the work
Illustration only: removing £80,000 of owner remuneration while ignoring a £60,000 replacement role produces a very different earnings view from an adjustment that considers both. The £20,000 difference is only illustrative; actual treatment depends on the duties, market evidence and valuation instructions. A payment labelled “owner cost” is not automatically unnecessary to the business.
Explain the sensitivity, not just a preferred answer
Where an item remains unresolved, show how alternative treatments affect the analysis under the agreed scope. Keep the financial effect separate from legal arguments about conduct or entitlement. A court or formal dispute assignment needs suitable instructions and expertise; a commercial adjustment schedule is not itself an expert determination.
Prepare for the conversation
- Reconcile the starting earnings measure.
- Record evidence and replacement costs for each adjustment.
- Show the effect of unresolved items separately.
General preparation guidance, not a valuation opinion or legal or tax advice. Any assignment is subject to an agreed scope, suitability and intended-use review. Examples are illustrative, not client cases.