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.
Read the guideReported profit becomes useful in a sale only when a buyer can follow the bridge to normalized, transferable earnings. This desk covers that bridge: SDE, EBITDA, adjustments, revenue quality, and the records behind each judgment.
Calculate SDE from one entity and period by keeping the source line, adjustment records, offsets, and owner-role questions in view.
Read the guide