It's calculated by adjusting pre-tax earnings with specific expenses ... For this reason, it is also referred to as "seller's discretionary income" or "owner's discretionary income" when the ...

What a Business Earns: Business earnings provide a financial benefit ... benefit to the owner (this is also known as SDE – Seller’s Discretionary Earnings using an adjusted EBITDA model).

How much should a business sell for? Most businesses will sell for 2 to 4 times seller's discretionary earnings (SDE) - though most are sold for between 2 and 3. The likely selling price of a business ...