Do you know who your buyer is?  Or how they asses value?  Different buyers define company value differently, one of two earnings figures are generally used in calculating this value.  Review the infograph below and learn whether  Seller’s Discretionary Earnings (SDE) or Adjusted EBITDA earnings are appropriate for calculating the value of your company.

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How to Calculate Adjusted EBITDA
 
How to Calculate SDE

buyer-and-what-value

Related Content:

How to Calculate SDE [infograph]

How to Calculate Adjusted EBITDA [infograph]

Value Advisor Library (valuation reference guides by industry)