Is Your Business Exit-Ready? Use the CLEAN Scorecard to Find Out.
It’s a simple but powerful framework we use to help business owners assess how ready their business is for a sale—and what they can do to boost valuation and buyer interest.
Business Valuation: Understanding Cash Flow Addbacks
A fundamental responsibility of business brokers is accurately determining and presenting business cash flow to potential buyers. This financial metric serves as the cornerstone of business valuation and is typically expressed through Seller’s Discretionary Earnings (SDE), EBITDA, or Adjusted EBITDA. For small business transactions, SDE represents the most commonly utilized methodology, making a thorough understanding of addbacks essential for both accurate cash flow determination and reliable business valuation.