GCF Value

JANUARY 20, 2025

Because of this, business valuation plays a crucial role in strategic decisions, whether buying, selling, or expanding operations within this sector. A good rule of thumb is to use SDE for earnings up to $500,000 and EBITDA for everything at $500,000 and above. The choice between these depends on the companys size.

Business Valuation 52

Business Valuation Asset-based Approach Appraisal Discounted Cash Flow 52

Viking Mergers

MARCH 24, 2022

SDE is variously referred to as Seller’s Discretionary Cash Flow, Adjusted Cash Flow, Owner Benefit, Recast Earnings, or Normalized Earnings, although Seller’s Discretionary Earnings is the official terminology advocated by the International Business Broker’s Association (IBBA). SDE vs EBITDA.

EBITDA 130

EBITDA Business Valuation Normalized Earnings Marketability 130

Equilest

JANUARY 25, 2025

Revenue Multiples: Businesses are often valued at a multiple of their annual revenue. EBITDA Multiples: A widely accepted method is applying a multiple (commonly 3x to 5x) to the EBITDA figure. Asset-Based Valuation This approach calculates the value of the business based on its tangible and intangible assets.

Intangible Assets 40

Intangible Assets Discounted Cash Flow Normalized Earnings EBITDA 40

Chris Mercer

NOVEMBER 15, 2022

I have heard many appraisers suggest that one should not normalize owner compensation when valuing minority interests “because the minority shareholder cannot change compensation.” Travis Harms and I cover the topic of normalizing adjustments in our book, Business Valuation: An Integrated Theory Third Edition , on pages 117-123.

Business Valuation 52

Business Valuation Normalized Earnings EBITDA Terminal Value 52