What SDE means, how it's calculated, and why it's commonly used to value small businesses.
What This Article Covers
This SellBusiness resource focuses on seller's discretionary earnings . The source content brief identifies the following key areas for this article.
Definition
How SDE is calculated
Common add-backs
Why buyers should verify add-backs
Businesses for Sale
Core marketplace intent — buyers and sellers of businesses in general.
Related Topics
This information is general in nature. Business purchases, sales, financing, tax, legal and commercial real estate matters can vary by transaction. Professional advice should be obtained where appropriate.