04/30/2026
When evaluating a business listing, the Seller's Discretionary Earnings (SDE) number often looks attractive. But for buyers, it can be a financial illusion.
Many buyers rely on Seller’s Discretionary Earnings (SDE) when evaluating a business, but the number can be dangerously misleading. This article shows how one buyer uncovered a 67% gap between the advertised SDE and the actual cash flow he would keep. You’ll learn why salary, depreciation, and financing adjustments distort the picture—and how to recast the numbers into real buyer cash flow. A must‑read before committing to any business purchase.
Read the full breakdown here: https://www.fincontrollex.com/blog/the-phantom-cash-flow-how-not-to-fall-for-the-sde-trap?utm_source=facebook&utm_medium=post&utm_content=220