Enter your financials to calculate your estimated Seller's Discretionary Earnings (SDE) \u2014 the real economic benefit your business generates for you as the owner. Then answer a few questions about risk factors that affect your multiple to get a preliminary value range.
Use numbers from your most recent full fiscal year. Enter 0 for any field that doesn't apply. All figures are annual amounts in dollars.
Your bottom-line profit from the most recent full year.
What you pay yourself (added back because it’s discretionary to a new owner).
Interest paid on business loans (added back as it’s financing-specific).
Income taxes paid by the business (added back to show pre-tax earnings).
Non-cash depreciation expense (added back).
Non-cash amortization expense (added back).
Personal benefits paid through the business.
Travel, meals, entertainment that are personal in nature.
Lawsuit settlements, emergency repairs, relocation, etc.
Any other expenses a new owner would not incur.
Your estimated SDE so far:
$0