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Personal Investments • Re: Buying a Business- Help with Valuation

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Is “made $60k” net earnings, or something else? What was the annual revenue for the last three years?

Have you calculated sellers discretionary earnings (SDE) for this business? Many buyers use a multiple of SDE to determine price.

Importantly: can you grow these numbers better than the original owners?

I’d also want to understand why earnings 3 years ago were less than last year. The pattern in many e-commerce businesses was different as sales came off the pandemic high.

Statistics: Posted by mrlan — Sat Apr 20, 2024 8:59 am



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