Let’s Buy a Business podcast

What is the difference between EBITDA vs SDE? (with a cash flow bonus)

0:00
16:05
Spol 15 sekunder tilbage
Spol 15 sekunder frem

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 podcast nuggies:
- SDE is not Cash Flow
- Loan payments don't show up on the P&L many times
- If you take a business with no debt, stack on 80%+ debt, you are fundamentally changing the entire business structure. You are ADDING risk here.

You can get into trouble if you only take their costs vs WHAT YOUR costs will be.

Sponsors:
Ampleo: The Go-To Source for Financial Due Diligence
https://lp.ampleo.com/transaction-advisory

Ready to level up?
Join the Let’s Buy a Business Community -
https://lets-buy-a-business.circle.so/checkout/lets-buy-a-business-community
Use Code: Founder24 for 30% forever and a free 1:1 call with me.

YouTube - Need more hands-on videos?
https://www.youtube.com/@letsbuyabusiness

Newsletter - Stay Up to Date -
https://lbab.beehiiv.com/subscribe

Flere episoder fra "Let’s Buy a Business"