If you are selling a small business, there is a good chance your buyer will walk in with an SBA loan. And if they do, there is something you need to understand: the bank is going to form its own opinion about what your business...
Two businesses. Same revenue. Same industry. One sells for $1 million. The other sells for $1.4 million. The difference has nothing to do with how hard the owners worked. It has everything to do with how buyers calculate value, and whether the owners understood that formula...
If you own an HVAC company, a plumbing business, an electrical contracting firm, or any other service-based trade business, you already know your industry is different. The work is physical. The relationships are local. The business often runs on your reputation, your license, and your...
Many business owners assume that growing revenue is the primary way to increase their company’s value. In reality, revenue alone rarely tells the full story. In today’s M&A environment, a business with lower revenue but strong systems and limited owner dependency may be more attractive...
Summary of This Guide If you own a small or mid-sized business, your most important number is probably SDE, which stands for Seller’s Discretionary Earnings. SDE is the primary figure that buyers and appraisers use to determine the actual value of your company. Why? Because SDE shows...
When business owners hear about “valuation,” two acronyms often come up: SDE (Seller’s Discretionary Earnings) and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). Knowing the difference between them helps you pick the right metric—and avoid undervaluing or overpromising. Below is a basic “Business Valuation 101” explanation of both, when...
