Gain clarity on your business's worth, whether you're buying, selling, or evaluating, by leveraging our free SDE Calculator
Unlock the full potential of your business valuation with our comprehensive Sellers Discretionary Earnings (SDE) Calculator. Designed to simplify the process of calculating SDE, our tool is an invaluable resource for both sellers and buyers in the business marketplace. With a focus on the critical adjustments necessary for an accurate valuation, this calculator is your first step towards making informed decisions in the buying or selling journey.
Looking beyond SDE calculation, we offer a Quality of Earnings "Sniff Test" service, a pre-LOI analysis designed to provide a deeper dive into the financials of a potential acquisition. This service is aimed at buyers seeking a preliminary assessment to identify any red flags or areas for negotiation before proceeding with a Letter of Intent (LOI).
Download our free SDE Calculator and take the first step towards a successful business transaction. Should you see the value in a deeper financial analysis, consider our Quality of Earnings "Sniff Test" service for an expert review of your potential acquisition.
Or if you need to get a value of your business and create a set of financial projections, check out our Existing Business Projection & Valuation template or our Acquisition Financial Projection Template.
Have questions or need further assistance? Contact us today. Let us help you navigate the complexities of business valuation with confidence.
Thank you for considering our tools and services to support your business acquisition strategy.
Sellers Discretionary Earnings (SDE) is a calculation used to determine the true economic benefit to the business owner. It starts with net profit and adds back non-operational expenses, owner's salary, and other personal benefits derived from the business. SDE provides a clearer picture of a business's financial health and is often used in valuing small to medium-sized businesses.
Our SDE Calculator simplifies the process of calculating the Seller's Discretionary Earnings by allowing you to input the business's financials, including revenue and expenses. It helps identify and apply common add-backs, such as owner compensation, personal expenses, non-cash expenses, and one-time costs, to accurately calculate the SDE.
The SDE Calculator is designed for business owners looking to sell their business, potential buyers evaluating an acquisition, and brokers assisting clients with buying or selling businesses. It's a valuable tool for anyone needing a straightforward way to calculate a business's valuation based on its discretionary earnings.
To ensure the most accurate SDE calculation, it's important to have detailed financial statements for the business and a clear understanding of which expenses can be legitimately added back. Consider consulting with a financial professional to identify all potential add-backs and to understand the nuances of your specific business situation.
For those requiring a more in-depth financial analysis, our Quality of Earnings "Sniff Test" service offers a comprehensive pre-LOI (Letter of Intent) analysis of a potential acquisition. This service is designed to identify any financial discrepancies or areas of concern that may affect the transaction.
