Understanding Seller’s Discretionary Earnings (SDE): Why It Confuses So Many First-Time and International Buyers
The Business Makes $400,000… So Why Does the Tax Return Show Only $50,000? One of the biggest surprises for first-time buyers is discovering that the profit shown on a company’s tax return is often very different from the earnings a business broker advertises. This difference is usually explained by a concept called Seller’s Discretionary Earnings,…