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Sellers Discretionary Earnings

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SDE is the industry standard way to declare a single number as "profit" which most businesses sell for a multiple of.
It's similar to EBITDA but has the benefit for the seller of Add Backs - which include Capex, vacation, vehicle, or non-necessary expenses that the books show, that the buyer will not need to repeat each year, post acquisition.
It's similar to EBITDA but has the benefit for the seller of Add Backs - which include Capex, vacation, vehicle, or non-necessary expenses that the books show, that the buyer will not need to repeat each year, post acquisition.