Sep 7, 2024 · SDE stands for “Seller’s Discretionary Earnings” in business and reflects the normalized profits that a company, most often a small business, generated on behalf of its owner across a given …

Nov 6, 2018 · Seller's Discretionary Earnings is a measure computed for a small to mid-size business that starts with the net profit, then adds back interest, taxes, depreciation, and other adjustments to …

Learn what Seller’s Discretionary Earnings (SDE) is, how to calculate it, and why it's key in valuing small businesses. Includes use cases and examples.

Aug 25, 2025 · It’s an acronym for seller’s discretionary earnings. Also known as the “owner’s benefit” or “seller’s cash flow,” SDE is the total net income a business owner makes from their company in a …

Seller’s discretionary earnings (SDE) is a measure of the earnings of a business and is the most common measure of cash flow used to value a small business. SDE allows a buyer to quickly …

Sep 18, 2025 · What Is Seller's Discretionary Earnings (SDE)? Seller's Discretionary Earnings measures the complete financial benefit a single, full-time owner extracts from their business operations. It's the …

May 5, 2025 · What Are a Seller's Discretionary Earnings (SDE)? Seller’s Discretionary Earnings (SDE) is one of the most common methods for valuing small businesses, especially those under $10 …

Seller’s Discretionary Earnings represents the total financial benefit available to a single owner of a business. Unlike net profit on financial statements, SDE adds back various expenses that wouldn’t …

Feb 5, 2025 · SDE is a financial metric used to determine the total financial benefit a small, owner-operated business generates for its owner. It creates a consistent standard that allows buyers to …

Seller's discretionary earnings is a metric used by owner-operated businesses to measure the full financial benefit a business generates for its owner. It is calculated by using the company's net profit …