Aug 13, 2026

Alright, a question I get often.

What is the difference between EBITDA vs SDE?
We dive into a few high-level differences to watch out for when evaluating businesses.

EBITDA is typically used for larger businesses ($2-3M+ Profit).
SDE is typically used for smaller businesses.

BUT neither of those is cash flow.

A few...

Aug 12, 2026

Can you negatively add back an owner's salary because you're going to put an operator in?

Yes, but don't expect the owner to pay for that in the valuation. Or to take you seriously if you propose that.

Why hire just 1 person? Why not hire 50 people and go into super growth mode while losing $3M/year?