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An Explanation of Discretionary Earnings ("SDE")?
An Explanation of Discretionary Earnings ("SDE")?

When buying a business listed online with a business broker a buyer will likely encounter a term such as Sellers Discretionary Earnings (SDE). This post explains SDE and how it impacts the pricing of a business for sale.

  • What is SDE or Sellers Discretionary Earnings?

  • Why is SDE Utilized when Buying or Selling a Business?

  • How Do Addbacks Work?

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FinancialJim PeddlePlaybook Corporate Advisory, Inc.Seller Discretionary Earnings ("SDE"), SDE