Tag: buying a business

If you’ve been in the marker for a small business, you have probably come across the term “Seller’s Discretionary Earnings” (SDE). SDE is a financial metric used in small business valuations to determine the potential profitability of a business and represents the amount of money a business owner can potentially earn from the business in […]

I was recently assessing a business to purchase and initially it seemed like it was a pretty good deal. It had a high earnings % and enough cash flow to keep my happy. However, when I ran it through a few recession-scenarios, something stuck out at me: when we encountered just a mild recession the […]