Valuation & Financials
How to Calculate SDE (Seller's Discretionary Earnings)
A step-by-step guide to calculating Seller's Discretionary Earnings, the common add-backs, a worked example, and mistakes that distort SDE.
7 min read
Valuation & Financials
Plain-language guides to the earnings metrics small business buyers and sellers use, including SDE and EBITDA.
Valuation & Financials
How to Calculate EBITDA for a Small Business
How to calculate EBITDA and adjusted EBITDA, the difference from SDE, a worked example, and what buyers check in diligence.
7 min read
Valuation & Financials
SDE vs. EBITDA: Which Earnings Metric Should You Use?
SDE vs. EBITDA explained with a worked example: how each is calculated, common adjustments, why multiples differ, and which metric fits which business.
6 min read
Valuation & Financials
Business Valuation Multiples by Industry: How SDE and EBITDA Multiples Work
How SDE and EBITDA multiples are used to value small businesses, what drives a multiple up or down, and illustrative examples across common industries.
7 min read