What Are SDE Add-Backs — & How They Can Boost Your Valuation
1. Introduction When selling a small business, your bottom-line net income isn’t the full story—and sophisticated buyers know it. Most owners deduct expenses for tax purposes that wouldn’t carry over to a new owner. These adjustments, called SDE add-backs, are the key to accurately reflecting the business’s true earning power. Understanding and correctly applying add-backs […]



