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Valuing a Business: A Look at Seller's Discretionary Earnings (SDE)

By Private Practice Transitions on Nov 8, 2021 1:20:00 PM

If you are in the process of selling or acquiring a small company, you have probably come across the term “Seller's Discretionary Earnings” or SDE. In essence, SDE is the foundation of business valuation for small businesses. It is a crucial concept that enables savvy buyers to gain a deeper understanding of a business’s story.  

Topics: Business Owners Sellers Seller's Discretionary Earnings SDE Selling a Business