What SDE Means When You Sell an Owner-Operated Business

Name: BridgePoint Business Group
Address: 2934 Greer Rd, Goodlettsville, TN, 37072, US
Telephone: 615-240-5235

Seller’s Discretionary Earnings is the cash the business produces for one working owner after normal add-backs. For most Main Street companies in Middle Tennessee, buyers start with SDE, not a guess from a website. BridgePoint Business Group uses it as the starting point for a confidential valuation. It is a range, not a promise.

Read more about how we value an owner-operated business.

The usual add-backs are owner pay, personal expenses run through the company, interest, depreciation, and one-time costs that will not repeat. A buyer will test each one, so only real add-backs belong in the number.

A photo of Mike DeVault. The owner of BridgePoint Business Group

Michael DeVault Broker/Owner BridgePoint Business Group

615-240-5235
(Click to Call)

Check out our page on EBITA Earnings

Explore our Business Valuation guide or use the Free Valuation Calculator.

Learn more about Business Valuation in Nashville.