What is Discretionary Earnings (SDE) vs. Adjusted EBITDA?
Seller’s Discretionary Earnings and Adjusted EBITDA are not the same number, and the one a buyer applies can shift your Southern California sale price by hundreds of thousands of dollars.
Seller’s Discretionary Earnings and Adjusted EBITDA are not the same number, and the one a buyer applies can shift your Southern California sale price by hundreds of thousands of dollars.
What you keep after a sale depends on planning. This strategies playbook covers purchase price allocation, installment sales, QSBS, and charitable and timing moves that protect your net proceeds. General information, not tax advice.
A working capital peg is the normal level of working capital you must leave in the business at close. Learn how it is calculated, how the true-up adjusts your closing cash, and how to negotiate it.
M&A add-backs turn your tax-optimized reported profit into the adjusted EBITDA buyers pay a multiple for. Learn the four categories, how to build the bridge, and which add-backs buyers accept or reject.
The modern SoCal seller is more informed, more deliberate, and more private than the owner who sold a decade ago. Here is who is selling Southern California businesses now and how it shapes the deal.