SDE Role Explained

Sde stands for seller’s discretionary earnings. What is the definition and purpose of sde? Seller’s discretionary earnings (sde) is a measure of a business’s earnings and is the most common.

Aug 25, 2025also known as the “owner’s benefit” or “seller’s cash flow,” sde is the total net income a business owner makes from their company in a year — generally speaking, it’s another way to. What does sde stand for? Seller discretionary earnings (sde) is almost exclusively an m&a term.

Seller’s discretionary earnings (sde) helps to show how much money a business buyer will be able to pocket at the end of the day. Learn what seller’s discretionary earnings (sde) is, how to calculate it, and why it's key in valuing small businesses. Sde represents the entire financial benefit your business would provide to one full-time.