What is normalization?
Adjusting historical financials to reflect sustainable, recurring performance on the buyer’s cost basis: stripping one-time items, resetting owner-specific costs to market, and reclassifying CapEx miscoded as OpEx.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.