article thumbnail

Seller’s Discretionary Earnings Explained

Viking Mergers

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
article thumbnail

Challenges When Valuing a Business for SBA Lending

Peak Business Valuation

This can include requesting additional financial documentation, reconstructing financial statements, or normalizing earnings to account for one-time expenses or non-recurring income. In other cases, the owner might hold key operational knowledge or skills that aren’t documented or easily transferable.

article thumbnail

M&A Terms Every Business Owner Should Know

Class VI Partner

Due Diligence will involve a review of the company’s financials and key documents and contracts, interviews with management and other key employees, customer and supplier reference checks, market research, and other processes designed to help the buyer understand and evaluate the seller’s business.