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 of owner-operated businesses
- 01
Valuation - 02
Earnings quality Seller's Discretionary Earnings (SDE): How to Calculate It
Calculate SDE from one entity and period by keeping the source line, adjustment records, offsets, and owner-role questions in view.
- 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: When Production and Collections Differ
A dental valuation needs more than one revenue number. See how production, collections, provider work, and practice scope belong in separate records.
- 05
Valuation What Is My Business Worth? How to Build a Sale-Planning Range
Use four record-based questions to frame a preliminary business sale-planning range without mistaking a calculator output for a company value.