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  • Co Choice Business Opportunities Recast Sellers Discretionary Earnings (sde) Worksheet 2013

Get Co Choice Business Opportunities Recast Sellers Discretionary Earnings (sde) Worksheet 2013-2025

Recast Sellers Discretionary Earnings (SDE) worksheet year-end. Total Revenue. Cost of Goods Sold. Gross Profit. Expenses. Book net before tax.+/ Adjust other income/expense. Net income before tax.

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To calculate discretionary cash flow, start with the company's pre-tax earnings. Next, add back in all non-operating expenses and subtract non-operating income. Add any nonrecurring expenses, and subtract nonrecurring (one-time) income. Add depreciation and amortization expenses.

The main difference is: SDE is the primary measure of cash flow used to value small businesses and includes the owner's compensation as an adjustment. EBITDA is the primary measure of cash flow used to value mid to large-sized businesses and does not include the owner's salary as an adjustment.

The SDE multiple is a number applied to the SDE that is found by analyzing averages in the industry and evaluating the unique qualities of the business.

SDE is calculated by taking your business's net profit and adding back or "recasting" certain discretionary expenses. An "add back" is an expense that is added back to find your SDE.

Every dollar increase in SDE increases the value of your business by its multiple. For example, let's say your business is likely to sell at a 3.0 multiple. If you increase your SDE by $100,000 per year, you have increased the value of your business by $400,000 ($100,000 x 4.0 multiple = $400,000).

SDE is typically the net income (or net loss) on the company tax return + interest expense + depreciation expense + amortization expense + the current owner's salary + owner perks.

A seller's discretionary earnings (SDE) is a seller's net income before taxes, interest, depreciation, and amortization plus certain other discretionary expenses like the owner's salary, benefits, and personal automobile expenses.

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© Copyright 1997-2025
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
Industries
Forms in Spanish
Localized Forms
State-specific Forms
Forms Kit
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232