Reconcile the owner before you compare the earnings

SDE and EBITDA answer different operating questions. SDE adds back one working owner's compensation and certain owner- specific items; EBITDA removes interest, taxes, depreciation, and amortization from net income. They differ, but neither label settles value. Start with one financial statement, show every adjustment, and model the cost of replacing the owner's actual work before comparing offers or multiples. Build SDE, reported EBITDA, and adjusted EBITDA from one statement; isolate owner replacement cost; and compare valuation multiples on a consistent basis. SDE vs. EBITDA: Reconcile Earnings Before Comparing Value Build SDE,…