Seller’s Discretionary Earnings Explained

Viking Mergers

Seller’s Discretionary Earnings Definition. Seller’s Discretionary Earnings (SDE) is a cash-flow-based estimate of the total financial benefit a full time owner-operator derives from the business on an annual basis. In addition to SDE, another relevant earnings measure is EBITDA.

EBITDA 130

M&A Terms Every Business Owner Should Know

Class VI Partner

Add-Backs or Adjustments “Add-Backs,” or Adjustments to Earnings, are additions to reported net income figures typically proposed by sellers for one-time expenses (e.g., In this sense, the earnings are adjusted to reflect these one-time or non-recurring expenses. KEY ARTICLE TAKEAWAYS.