After wanting to know how much Seller Finance is typical, and how frequently Net Working Capital is included in the price, many sellers and buyers want to know which valuation metric is more prevalent for their size transaction. The table below shows the four-quarter average percentage of how often Seller’s Discretionary Earnings (SDE) is used versus EBITDA of 2Q25 based on the IBBA/M&A Source Market Pulse Report. There are general guidelines for which to use, and in a perfect world, the results from using one versus the other would be the same. To learn which may be more appropriate for your business, feel free to reach out.
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