Why Use Seller’s Discretionary Earnings to Value a Business?
Business appraisers will often refer to and use multiples of Seller’s Discretionary Earnings, or SDE, when discussing or calculating firm value.
We provide Business Valuations in Colorado, answering the question “how much is the company worth?” Our goal is to provide an accurate business appraisal for the purposes of decision support and financial reporting. Our clients most often include business owners, private investment groups, CPA’s, lenders, and the government’s taxing authorities.
Denver, Colorado
Director of Valuations
Dennis is Pinnacle Valuations’ founder and Director of Valuations. He is a Certified Business Appraiser through the Institute of Business Appraisers and specializes in the valuation of small, privately-held businesses. He has valued companies in a broad range of industries across the United States and for a variety of reasons, including Small Business Administration (SBA) loans, startups seeking an independent opinion of value to provide to potential investors and for buyouts of initial investors, C to S corp conversions, general business planning, and more.
We are a team of experienced business valuation specialists with the expertise and credentials to provide you with a reliable and well-supported determination of business value for your target company.
We focus strictly on the valuation of privately-owned companies. We provide independent, third-party business appraisal services.
When you choose to work with us we feel as though we are your partner and we are honored to have earned your trust. We work hard to be responsive to your needs and are respectful when working with your borrowers.
When we value a company for you, only one business appraiser will work on your assignment, start to finish. The result is a cohesive and well thought out certified appraisal, free from inconsistencies and errors in logic that may arise when multiple people work on an assignment.
Our business appraisers are holders of the highly respected Certified Business Appraiser (CBA) credential, a designation recognized by the courts, the government, and the valuation community. For example, CBA’s meet the Small Business Administration’s requirements that define a ‘qualified source’; CBA’s opinions of value are used by the SBA to validate business value when granting government-backed business acquisition loans. The CBA credential was granted by the the Institute of Business Appraisers (IBA) and is presently monitored by the National Association of Certified Valuators and Analysts, (NACVA).
In addition to the CBA credential, our appraisers also hold graduate degrees in business. They have extensive experience valuing small to mid-sized companies in a broad range of industries: from oil and gas to social media, for-profit education to medical marijuana, in addition to common “main street” industries such as retail, advertising, and distribution.
Your confidential files are always protected, both in transit and at rest. We use 256 bit AES encryption, compliant with federal digital security requirements set forth in FERPA, PCI-DSS and HIPAA.
Business appraisers will often refer to and use multiples of Seller’s Discretionary Earnings, or SDE, when discussing or calculating firm value.
There are many different factors to consider when a business needs to apply for an SBA loan; the Small Business Administration lays out all of
Seller’s Discretionary Earnings is a measure of the total financial benefit available to a single owner working in the firm on a full-time basis.
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