Seller’s Discretionary Earnings (SDE) Valuation | Selling a Business in California
A Seller’s Discretionary Earnings (SDE) is a seller’s net income before taxes, interest, depreciation, and amortization plus certain other discretionary expenses like the owner’s salary, benefits, and personal automobile expenses. The Seller’s Discretionary Earnings worksheet provides a detailed breakdown of how SDE is calculated. The Seller’s Discretionary Earnings multiple is used to value a business […]