SDE vs. EBITDA and the Cost of Replacing the Owner
Compare SDE and EBITDA from the same period, reconcile the owner-pay difference, and test what the owner's work will cost to cover after a sale.
Selling an Owner-Operated Business: Earnings and Handoff
For an owner-operated company, reported earnings may still include the owner's pay and work. Separate compensation from the responsibilities, relationships, and capacity that must remain after the sale before relying on earnings or planning the handoff.
5 published articles
Guides for owners considering owner-operated businesses
- 01
Valuation - 02
Earnings quality Seller's Discretionary Earnings (SDE): How to Calculate It
Calculate SDE from one reporting period by tying each adjustment to the account, documents, and related offsets behind it.
- 03
Industries How to Prepare Records for a Veterinary Practice Valuation
Use the 2026 veterinary chart of accounts to reconcile collections, receivables, pharmacy inventory, owner pay, and sale-allocation records before valuation.
- 04
Industries Dental Practice Valuation: What Your Reports Need to Show
Turn dental production, provider hours, patient activity, payer mix, and facility records into a valuation file that can withstand review.
- 05
Valuation What Is My Business Worth? Estimate a Sale-Price Range
Estimate a business sale-price range from transferable earnings, enterprise value, debt, working capital, and cash at closing.