SDE Add-Backs: What Your Business Really Earns (and What a Buyer Will Believe)
What Seller's Discretionary Earnings are, which add-backs buyers and SBA lenders usually accept, which ones raise eyebrows, and how to document them before you sell.
For Florida business owners
Thinking about selling your business? Find out what it’s really worth, confidentially.
I’m Jonas Martin, a business broker with American Business Brokers. I help owners in Sarasota, Charlotte, Manatee and Lee counties understand their value, prepare, and sell on their terms, without word getting out.
Or call 941-315-5019 · Download the exit-readiness checklist
- Free & no obligation
- No sale, no commission*
- NDA before buyers learn your name
- No signs, no word on the street
Why owners call me
You Want to Understand the Process to Sell Your Business
Most owners don't call because they're ready to list tomorrow. They call because they want to know where they stand.
“What is it actually worth?”
A realistic, plain-English valuation based on your real numbers, not a sales pitch or an inflated figure to win a listing.
“I can’t let anyone find out.”
Employees, customers and competitors stay in the dark. Confidentiality is built into every step.
“I’m tired, and I want a plan.”
Retirement, burnout, health, family, or a new chapter. We map out timing and what to fix first, so you exit on your terms.
“My books aren’t perfect.”
Few are. We’ll look at what buyers and lenders will see, and what's worth tidying up before you go to market.
“The business runs through me.”
Common in service businesses. We work on making it transferable, which supports both value and buyer interest.
“I want someone who’s been there.”
Three generations of brokers and developers, more than three decades in development, sales and business transactions, and direct experience on both sides of the table.
How selling works
A simple, confidential process
Confidential conversation
Your goals, timing and questions. No obligation.
Valuation
I review your financials, calculate SDE and give you a realistic price range.
Preparation
We organize financials, leases, contracts and equipment lists, and prepare a confidential business profile.
Discreet marketing
Blind marketing that doesn't name you. Buyers sign an NDA and are screened first.
Offers & negotiation
Compare price, terms, financing and transition, not just the headline number.
Due diligence & closing
I coordinate with buyers, lenders, attorneys and CPAs through to closing and handover.
What buyers pay for
What actually drives your sale price
Buyers pay for reliable cash flow they can take over. These factors move the number most.
SDE
Seller’s Discretionary Earnings
Net profit plus your salary, benefits and legitimate add-backs. It's the starting point for pricing most owner-operated businesses. Request a free, confidential valuation →
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Clean, documented books
Financials that tie to your tax returns, with personal expenses kept separate. Buyers and SBA lenders rely on what's documented.
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Recurring revenue
Maintenance agreements, service routes and repeat customers are worth more than one-off jobs.
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Owner independence
Trained staff, a foreman or manager, and written systems mean the business doesn't walk out the door with you.
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Transferable contracts & lease
Customer contracts that can be assigned, and a lease with enough term or renewal options, reduce risk for buyers and lenders.
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Diversified customers
No single customer making up an outsized share of revenue. Concentration makes buyers nervous.
My confidentiality promise
Nobody finds out unless you decide to sell
NDA first
Buyers sign a non-disclosure agreement before they learn your business’s name or see your numbers.
No signs, no listing photos of your storefront
Your business is marketed by description, not by name. There's no "For Sale" sign, ever.
Buyers screened
Buyers are qualified on experience and financial capacity before they get details or meet you.
Industries
I sell all kinds of businesses, including many service companies
Service businesses are a particular strength. Find what buyers look for in yours:
Landscaping & Lawn Care
What buyers look for →Pressure Washing & Exterior Cleaning
What buyers look for →Cleaning & Janitorial
What buyers look for →Property Management
What buyers look for →Home Services & Trades
What buyers look for →Any other business
Retail, manufacturing, distribution, franchises and more →Free tools
Not ready to talk yet? Start here.
See where you stand, privately, in a few minutes. When you want to know what your business is worth, ask Jonas for a confidential valuation.
Sale-readiness quiz
10 yes/no questions, a score, and tips on what to fix first.
Take the quiz →Exit-readiness checklist (PDF)
The documents and steps buyers and lenders will ask about.
Get the checklist →Request a free, confidential valuation
Want to know what your business is worth? Jonas will review your numbers personally.
Request a valuation →Where I work
Southwest Florida business owners
Sarasota County
Selling in Sarasota →Charlotte County
Selling in Charlotte →Manatee County
Selling in Manatee →Lee County
Selling in Lee →Based at American Business Brokers in Fort Myers. I work with owners throughout Florida.
In their words
What customers say
“Jonas Martin was a true blessing throughout the entire process of selling our business. From the very beginning he made everything easy and comfortable for us. He handled the details, kept us informed, and guided us every step of the way so we never felt overwhelmed. Selling a business is a big decision, and Jonas took the stress out of it. We are grateful for his professionalism, patience, and genuine care. We highly recommend him to anyone looking to sell their business.”
“Jonas is the most wonderful Business Broker we’ve worked with. He is professional, honest and makes the whole process, whether buying or selling, fun and enjoyable.”
FAQ
Questions owners ask
Is the valuation really free and confidential?
Yes. The first valuation conversation is free and carries no obligation. What you share stays between us, and nothing about your business is shared with anyone without your permission.
Will my employees, customers or competitors find out?
Not from me. Businesses are marketed without naming them. Buyers must sign a non-disclosure agreement and be screened before they learn which business it is, and there's no sign out front. Calls, meetings and showings are arranged discreetly, often after hours or away from the business.
How long does it take to sell a business?
It varies with the business, the price, how well prepared the records are and how buyers will finance the purchase. Several months to a year is common for small businesses, and preparation done ahead of time usually helps things move faster.
What is SDE, and why does it matter?
Seller's Discretionary Earnings (SDE) is the total financial benefit the business provides one full-time owner: net profit before tax, plus the owner's salary and benefits, plus add-backs such as depreciation, interest and genuine one-time or personal expenses. Most small, owner-operated businesses are priced as a multiple of SDE.
My books aren't perfect. Can I still sell?
Often, yes. But buyers and lenders rely on tax returns and financial statements, so income that isn't documented is hard to get paid for. The earlier we review your records, the more time you have to clean them up.
The business depends on me. Is it still sellable?
Many owner-operated businesses sell. Value and buyer interest usually improve when key relationships, scheduling and know-how are shared with staff and written down, and when you're willing to train the new owner through a transition period.
How do buyers pay for a business?
Commonly with a mix of buyer cash, an SBA 7(a) loan from a participating lender, and sometimes seller financing, where you carry part of the price as a note. Financing is always subject to lender approval.
How do fees work?
You only pay a commission on the successful completion of a sale of your business. No Sale no Commission paid.*
*Fees charged by other professionals you engage, such as attorneys, CPAs, appraisers, or escrow agents, are separate. In some engagements, a separate fee may apply for additional assistance. Any such fee is explained and agreed to in writing before any work begins.
Do you work with international buyers?
Yes. Some buyers are foreign investors, including Canadians, who may use the E-2 Treaty Investor visa route. Jonas went through the E-2 process himself. Visa eligibility is decided by U.S. authorities, and buyers should work with an immigration attorney; no visa outcome is promised.
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Curious what your business is worth?
Get a free, confidential valuation. No obligation, no pressure, and nobody finds out unless you decide to sell.