SDE = Seller's Discretionary Earnings — net profit plus the owner's salary and perks. Usually listed as "cash flow" on business listings.
Deal Check
Enter the asking price and SDE above to see if the price is fair.
Deal Check
Probably fairly priced
You'd Pay
—
Fair Multiple
2x – 4x
Industry
Any
Small businesses typically sell for 2x–4x SDE, adjusted by industry
Same SDE × multiplier method professional business appraisers use
This estimate is for informational purposes only and should not be used for legal, financial, or investment decisions. Always verify the seller's financials and consult a qualified professional before buying a business.