Tools
SDE Calculator
The earnings figure small-business multiples are applied to, built up line by line from the tax return.
Total Add-Backs
$175,000
Everything above net income a buyer normalizes
Seller's Discretionary Earnings
$325,000
The figure multiples are applied to
Lenders and buyers will scrutinize each add-back; claim only what you can document.
What counts as a defensible add-back is covered in the add-backs glossary entry; apply a market multiple with the Business Valuation Calculator.
Everything here is educational information, not financial, legal, tax, or investment advice. Figures are estimates or cited third-party data; verify anything that matters against primary sources and your own advisors before acting on it.