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The financial world is changing for the first time since 2009. It seems, for the near future, that the era of cheap money is over and asset prices will now reflect a higher cost of money as the Federal Reserve along with other central banks raise rates to fight inflation. While 4-5% Fed rates may […]

Definition of Seller’s Discretionary Earnings Seller’s Discretionary Earnings, or SDE, is a type of annual cash flow used to benchmark a privately owned small business profitability based on a single full-time owner operator. The net income is reconstructed to account for “discretionary expenses” which are typically owner benefits. The purpose of this financial reconstruction, or

Amortization A non cash expense item in the income statement for intangible assets. It is similar to depreciation which is used for tangible assets. It’s purpose is to match the capital asset’s expenses with the revenue it generates. Used in accrual accounting to match revenues. Depreciation Depreciation is the expense item in the income statement

You could put up your business for sale tomorrow but you probably will not get top dollar for it. The same principal applies for any asset that you want to sell whether it is a house or car. By preparing your business for sale, you ensure that all the nuances are resolved to ensure a