disallowedSpeculative
Projected cost savings
Savings a buyer or owner expects to achieve in the future, such as renegotiated contracts or headcount cuts.
Rule
Not an add-back. Historical cash flow is measured as reported. Projections belong in a separate pro forma exhibit and are discounted heavily.
Worked example
As reported
Planned headcount reduction $60,000
In the memo
Excluded from CFADS; shown in pro forma only
The objection you will hear
Rejected outright under SBA and most commercial underwriting.
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