Author: exitoasis


Note: This one is a quick hit for those that struggle with EBITDA vs. SDE. Owner’s compensation is the key. SDE- Is an acronym for Seller’s Discretionary Earnings, and is a metric for determining the historical cash flow of a business. It is a recasting process that starts with the net profit of a business, from either the business tax return or the year-end income statement.

What Is My Small Business Worth? 3 Easy Steps

Grrrrrr.  Another great example of what drives us crazy. Wealth Pilgrim’s blog post What Is My Business Worth?  3 Easy Steps to Find Out. Well written, a great and straightforward overview of how to come up with your seller’s discretionary earnings . . . and then it goes off the rails:  


Note: There’s the how-to, the financial considerations, and the impact on the owner, but there’s more to it.  Interesting to see how this teen reacts to the sale of his Dad’s business.  Obvious pride.  A unique reminder that family gets impacted by the sale.