What Is Seller's Discretionary Earnings and Why Does It Matter

What Is Seller's Discretionary Earnings and Why Does It Matterby: Donna HarrisPublished on: 13/07/2026

Seller's Discretionary Earnings — SDE — is the number that determines what your business is actually worth to a buyer. Most small business owners have never heard of it. Here's what it is, how it's calculated, and why your books determine your multip

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What Is Seller's Discretionary Earnings and Why Does It Matter