• Seller's Discretionary Earnings – What is it and How is it Calculated?

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    One of the basic financial figures used in valuing businesses is this thing called EBITDA which stands for Earnings Before Interest, Taxes, Depreciation and Amortization. When it comes to valuing small businesses, however, you will often find that the value has really been based on something called SDE which is Seller’s Discretionary Earnings. So what’s the different between the two?

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