Free SDE Calculator

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Free SDE Calculator

Gain clarity on your business's worth, whether you're buying, selling, or evaluating, by leveraging our free SDE Calculator

Free SDE Calculator

Gain clarity on your business's worth, whether you're buying, selling, or evaluating, by leveraging our free SDE Calculator

Join 15,000+ founders and consultants who have used our free resources and tools

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Maximize Your Business Valuation with Our Free SDE Calculator

Unlock the full potential of your business valuation with our comprehensive Sellers Discretionary Earnings (SDE) Calculator. Designed to simplify the process of calculating SDE, our tool is an invaluable resource for both sellers and buyers in the business marketplace. With a focus on the critical adjustments necessary for an accurate valuation, this calculator is your first step towards making informed decisions in the buying or selling journey.

Why Use Our SDE Calculator?

  • Simplify Complex Calculations: Understand the true value of a business by easily calculating Sellers Discretionary Earnings, incorporating common add-backs.
  • Informed Decision Making: Gain clarity on the financial health and potential of a business, whether you're looking to buy, sell, or evaluate.
  • Maximize Value: Identify key adjustments to ensure you're not leaving money on the table or overpaying for an investment.

Features of the SDE Calculator

  • Customizable Inputs: Enter financials, including revenue and expenses, to receive tailored SDE calculations.
  • Comprehensive Add-Backs: Includes categories such as owner compensation, personal expenses, non-cash expenses, and exceptional costs to ensure a thorough valuation.
  • Three-Year Analysis: Evaluate the business's performance over time for a more accurate assessment.
  • Direct Link to Industry Multiples: Access business valuation earnings multiples by industry to apply to your SDE, enabling a market-relevant valuation.

Who Benefits from This Tool?

  • Potential Buyers: Equip yourself with a precise valuation tool to navigate the acquisition process confidently.
  • Business Brokers: Enhance your service offering with a reliable calculator that adds value to your client consultations.
  • Business Owners: Understand the valuation of your business from a buyer's perspective, whether planning to sell now or in the future.

Elevate Your Acquisition Strategy

Looking beyond SDE calculation, we offer a Quality of Earnings "Sniff Test" service, a pre-LOI analysis designed to provide a deeper dive into the financials of a potential acquisition. This service is aimed at buyers seeking a preliminary assessment to identify any red flags or areas for negotiation before proceeding with a Letter of Intent (LOI).

Why Choose Our Quality of Earnings Service?

  • Expert Analysis: Benefit from our financial expertise to scrutinize the quality of earnings reported.
  • Negotiation Leverage: Gain insights that can serve as a powerful tool in negotiating the terms of the acquisition.
  • Risk Mitigation: Identify potential issues early in the process, saving time and resources.

Get Started Today

Download our free SDE Calculator and take the first step towards a successful business transaction. Should you see the value in a deeper financial analysis, consider our Quality of Earnings "Sniff Test" service for an expert review of your potential acquisition.

Or if you need to get a value of your business and create a set of financial projections, check out our Existing Business Projection & Valuation template or our Acquisition Financial Projection Template.

Have questions or need further assistance? Contact us today. Let us help you navigate the complexities of business valuation with confidence.

Thank you for considering our tools and services to support your business acquisition strategy.

What is Sellers Discretionary Earnings (SDE)?

Sellers Discretionary Earnings (SDE) is a calculation used to determine the true economic benefit to the business owner. It starts with net profit and adds back non-operational expenses, owner's salary, and other personal benefits derived from the business. SDE provides a clearer picture of a business's financial health and is often used in valuing small to medium-sized businesses.

How does the SDE Calculator work?

Our SDE Calculator simplifies the process of calculating the Seller's Discretionary Earnings by allowing you to input the business's financials, including revenue and expenses. It helps identify and apply common add-backs, such as owner compensation, personal expenses, non-cash expenses, and one-time costs, to accurately calculate the SDE.

Who should use the SDE Calculator?

The SDE Calculator is designed for business owners looking to sell their business, potential buyers evaluating an acquisition, and brokers assisting clients with buying or selling businesses. It's a valuable tool for anyone needing a straightforward way to calculate a business's valuation based on its discretionary earnings.

How can I get the most accurate SDE calculation?

To ensure the most accurate SDE calculation, it's important to have detailed financial statements for the business and a clear understanding of which expenses can be legitimately added back. Consider consulting with a financial professional to identify all potential add-backs and to understand the nuances of your specific business situation.

What should I do if I need more detailed analysis beyond the SDE?

For those requiring a more in-depth financial analysis, our Quality of Earnings "Sniff Test" service offers a comprehensive pre-LOI (Letter of Intent) analysis of a potential acquisition. This service is designed to identify any financial discrepancies or areas of concern that may affect the transaction.

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