How to Calculate Seller Discretionary Earnings Correctly
How to Calculate Seller Discretionary Earnings Correctly Quick Answer SDE calculation starts with net income and adds back nine line items: one owner’s W-2 compensation, owner benefits, interest, taxes, depreciation, amortization, one-time costs, documented personal expenses, and above-market family payroll. The formula is SDE = Net Income + Owner Comp + Owner Benefits + Interest […]