SDE vs. EBITDA: How Does Owner Pay Change the Math?
Compare SDE, EBITDA, and adjusted EBITDA by tracing how owner pay, replacement work, same-period records, and offer denominators change the math.
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 of owner-operated businesses
- 01
Valuation - 02
Earnings quality Seller's Discretionary Earnings: Calculate SDE From Your Books
Calculate seller's discretionary earnings from reported profit, owner compensation, signed adjustments, and source records without treating SDE as cash or value.
- 03
Industries Veterinary Practice Valuation: What Makes a Value Defensible
Learn how veterinary practice valuation connects purpose, maintainable earnings, owner roles, operating risk, and records from different systems.
- 04
Industries Dental Practice Valuation: How Value Is Actually Determined
Learn how dental practice valuation connects collections, costs, owner production, operating assets, transfer assumptions, and truly comparable sales.
- 05
Valuation What Is My Business Worth Before I Have an Offer?
A sale-planning range needs a defined interest and date, transferable earnings, a compatible price-and-earnings comparison, and separate payment terms.