Hey {{first_name}},
Ask ten business owners what their company is worth, and nine of them will start talking about revenue.
Buyers don’t care about your revenue.
The number that actually determines your sale price is called Seller’s Discretionary Earnings (SDE). For larger businesses, it’s adjusted EBITDA. This is the true economic benefit of owning the business, and it’s what every buyer multiplies to calculate their offer.
Here’s how SDE works: you take your net income and add back your salary, your benefits, one-time expenses that won’t repeat, personal expenses running through the books, and depreciation.
A business showing $500K in net profit might actually produce $800K+ in SDE. And a buyer is applying their multiple to THAT number. The difference between a sloppy P&L and a properly adjusted one can be $200K–$400K in sale price. Real money left on the table because nobody showed the owner how to present their financials.
Most owners don’t know their SDE. Which means they don’t actually know what their business is worth.
We built a tool that calculates it for you. Takes about 2 minutes. You answer a few questions about your business, drop in some basic financial numbers, and it gives you a valuation range, minimum and maximum, based on current market multiples.
Click on the link below:
To your success,
Unlock Wealth Weekly Team