Tag Archives: discretionary earnings

Understanding Seller’s Discretionary Earnings: A Comprehensive Guide

What is Seller’s Discretionary Earnings? Seller’s Discretionary Earnings (SDE) is a crucial financial metric used to assess the potential profitability of small businesses. It refers to the total income a business owner receives from his or her business, adjusted for non-recurring expenses, owner’s benefits, and occasional payments. This figure helps potential buyers evaluate a business’s true earning potential, excluding expenses …

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