Business Valuation & SDE Calculator
Determine fair market enterprise value for small and mid-sized companies using Seller’s Discretionary Earnings (SDE), EBITDA multiples, and verified owner add-backs.
Annual Profit & Loss Financials (USD)
Estimated selling price range: $1,104,469 – $1,559,250.
How Main Street vs. Mid-Market Businesses Are Valued
The single most common mistake small business owners make during exit planning is conflating Net Profit with SDE. In privately held businesses, owners intentionally minimize taxable net profit through business write-offs. Professional buyers recategorize these into SDE:
Represents all cash flow an owner-operator can extract from the business. A business with $100k net profit, $150k owner salary, and $50k in legitimate perks has $300k of SDE—commanding a $750k-$900k valuation rather than just $250k.
Most acquisitions between $500k and $5M are financed with SBA 7(a) government-backed loans. The business must generate enough SDE to pay the new owner a living wage and service the 10-year loan debt at a minimum 1.25x DSCR.
Frequently Asked Questions About Business Valuation
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