6/4/2010

Seller discretionary earnings, or SDE, is an important metric for small-business owners trying to value their business. It strips out add-backs to give a potential buyer an accurate picture of cash flow from operations. Barbara Taylor discusses four types of add-backs that owners should be looking for and provides a fictional profit-and-loss statement that has been recast in terms of SDE.

Full Story:
NYTimes.com

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