One-Off / Non-Recurring Item
A revenue or cost item that occurred only once and is not expected to repeat, typically added back in a Quality of Earnings analysis.
Also known as: Non-recurring item, Exceptional item, One-time item
One-line definition
A one-off is any P&L item that management argues is not part of normal operations and therefore should be excluded from the recurring EBITDA base.
Common examples
- Litigation settlements.
- Redundancy and restructuring costs.
- M&A advisory fees.
- Natural disaster insurance claims.
- Covid-related government grants.
TS angle
The word "one-off" is the most abused term in a vendor information pack. TS teams independently verify every claimed add-back with supporting documentation and apply professional scepticism.
Related terms
Normalized EBITDA
EBITDA restated to remove one-off items and reflect a sustainable, run-rate level of profitability.
Quality of Earnings
The TS work-product that bridges reported EBITDA to a defensible run-rate figure a buyer can underwrite.
EBITDA
Earnings Before Interest, Taxes, Depreciation and Amortisation — the most cited profitability proxy in M&A.