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Which Earnings Metric Do Buyers Use? Adjusted EBITDA vs. SDE Explained

Episode Summary

The same HVAC or plumbing business can swing $120,000 in value depending on one earnings metric a buyer picks. Find out which number applies to you, and why unverified add-backs can cost you far more than you'd expect. More info at https://coregrowthgroup.com/adjusted-ebitda-vs-sde-differences-calculator-use-cases

Episode Notes

[thoughtful] Here's a question for any HVAC or plumbing owner thinking about selling. What if the exact same business, with the exact same profit, could be worth two very different numbers depending on which earnings metric a buyer decides to use? Today we're digging into SDE versus Adjusted EBITDA, and why the add-backs behind those numbers get torn apart in diligence. Core Growth Group City: Marble Falls Address: 2205 Warehouse Circle Website: https://coregrowthgroup.com/ Email: recruitcomcare@gmail.com