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FREE TOOL · NO ACCOUNT

SDE calculator: work back to the number the price is built on

EXAMPLE · SAMPLE LISTING, NOT REAL DATA
Supported SDE
$273,500
Starting number + supported add-backs only
Stated SDE
$422,000
Starting number + every add-back claimed
The gap
$148,500
35% of stated SDE · 3 lines with no figure yet

$148,500 of this SDE currently rests on the seller's word.

Start from the tax return or the P&L, add back only what you can stand behind, and see how much of the listing's SDE rests on the seller's word. Pure arithmetic. Nothing is stored.

1 · Start from the documents
Where the starting number comes from is itself a status
EXAMPLE · SAMPLE LISTING, NOT REAL DATA
The bottom line before any add-back
Supported — a document backs the starting number
Unlocks the implied multiples below
So the tool can show you where the listing's number lands
2 · Mark each add-back by what stands behind it
One line per add-back, one status per line
Owner's salary
Ask for: W-2 or payroll register
Owner's payroll taxes & benefits
Ask for: Payroll tax filings, benefits invoices
Depreciation
Ask for: Tax return schedule / fixed-asset ledger
Amortization
Ask for: Tax return schedule
Interest
Ask for: Loan statements, GL interest account
One-time expenses
Ask for: The invoice, and the prior two years' GL for the same account
Personal expenses run through the business
Ask for: GL detail for the account + receipts
Family members on payroll
Ask for: Payroll register, hours, replacement cost
Rent adjustment (related-party lease)
Ask for: Lease, market-rent comparison
SUPPORTED · I have the document   CLAIMED · the seller says so, nothing in hand   MISSING · a figure I'd expect and haven't been given
3 · Compare supported SDE with stated SDE
Same inputs, sorted by what you can stand behind
Supported SDE
$273,500
Starting number + supported add-backs only
Stated SDE
$422,000
Starting number + every add-back claimed
The gap
$148,500
35% of stated SDE · 3 lines with no figure yet

$148,500 of this SDE currently rests on the seller's word.

Asking ÷ supported SDE
1.83×
Asking ÷ stated SDE
1.18×
The listing states $422,000 of SDE. Your rebuild reaches $422,000 if every claim holds — the listed figure is explained by the lines above. Stated SDE is 64% of revenue.
What to ask the seller for
One line for every add-back that isn't supported yet — the document that would settle it.
  • Owner's salary · $85,000W-2 or payroll registerclaimed
  • Owner's payroll taxes & benefits · $8,500Payroll tax filings, benefits invoicesclaimed
  • AmortizationTax return schedulemissing
  • One-time expenses · $31,000The invoice, and the prior two years' GL for the same accountclaimed
  • Personal expenses run through the business · $24,000GL detail for the account + receiptsclaimed
  • Family members on payrollPayroll register, hours, replacement costmissing
  • Rent adjustment (related-party lease)Lease, market-rent comparisonmissing
Your inputs, your arithmetic. Supported means a document backs the figure — it is not verification, audit, or assurance. Not financial advice, not a valuation.
VERITY · IN-DEPTH ANALYSIS
Verity does this on the documents themselves.

Upload the listing, the returns, and the P&L — every figure traced to its source page, every contradiction surfaced as a question. Reading your documents is always free; the in-depth analysis that surfaces every contradiction is $20 a deal.

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