Breakwater M&A Blog: Expert Insights for Buying & Selling Businesses

Explore valuable articles, guides, and strategies tailored for entrepreneurs preparing to sell businesses in the $2M-$20M revenue range.

SDE vs EBITDA: What Buyers Need to Know Before Valuing a Business
Buying a Business Morgan Tate Buying a Business Morgan Tate

SDE vs EBITDA: What Buyers Need to Know Before Valuing a Business

Buying a business is hard enough without confusing financial jargon. Two of the most misunderstood terms are SDE and EBITDA. They both try to answer the same question: how much money does this business really produce? But they are not interchangeable, and using the wrong one can lead to serious overpaying or walking away from a great deal.

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