Seller's Discretionary Cash Flow

also known as Seller's Discretionary Earnings

Seller’s discretionary cash flow (SDCF) or seller’s discretionary earnings (SDE) is a common cash flow based measure of business earnings for owner-operator managed businesses. According to the International Business Brokers Association, SDCF can be determined as follows:

ValuAdder financial statement recasting worksheets help you calculate the seller's discretionary cash flow for your business.