What Is Seller's Discretionary Earnings

What would a buyer actually pay for your business today?Most small business owners don't know — because nobody has explained the number buyers use to make that calculation. That number is called Seller's Discretionary Earnings, and once you understand it, you'll never think about your books the same way again.In this solo episode, Donna Harris walks through SDE from the ground up: what it is, how it's calculated step by step with real numbers, why it's dramatically different from net profit, and why the condition of your financial records determines whether you sell at a 2x multiple or a 4x multiple — a difference that can be measured in hundreds of thousands of dollars.If you're thinking about an exit in the next three to five years, this episode tells you exactly what to do — and why starting now matters more than you think.Donna Harris, MBA, MAccCEO, Bookkeeping Made Simple LLCmysimplebookkeeping.com | 801-692-0032