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What does "SDE" mean, as in "Great SDE" or "SDE Refer Trucking"?

What does "SDE" mean, as in "Great SDE" or "SDE Refer Trucking"?

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We are financial consultants to a group of investors whom we have their consent to manage their funds which is in our custody for cooperation in joint venture business investments.

Our areas of interest include Property Development and real estate, Health Care, Education and training, Mining and exploration, Energy, oil and gas,Technology, Software development, Agriculture, Manufacturing, Finance Services and Leisure.However, all viable proposals within reason will be considered.

Funds shall be made available to you as a direct investment loan at 3% interest rate per annual for a period of 2 or 30 years depending on what you prefer. You may contact us if you have interesting investment proposal for possible business collaboration for our study.

We look forward to your reply to enable us provide you with details or you may visit our website.

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Jesse Peterson
phone: (980) 239-7539

Jul 11, 2017
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Maricopa County, AZ

Thank you Sean. I first ran into it in an ad mentioning "$220,000 SDE Refer trucking leases trucks ..." and when I tried to ask the advertizer what it meant, I had first to sign and fax a non-disclosure, which I didn't particularly want to go to the trouble to do. So, then I called up other adds with "SDE" mentioned, didn't see an explanation in any of them, and so, stumped, asked the community. Then I noticed it seemed to be associated with "cash flow," But, without you, I might have been at least a week coming up with Seller's Discretionary EARNINGS." Thanks again.

Dec 1, 2009
Sean Lacy
The Hatteras Group
New Hanover County, NC

When you see SDE in a business for sale ad, it usually stands for "seller's discretionary earnings" or "discretionary cash flow." All that means is the earnings before interest, taxes, depreciation plus the salary for one working owner and any discretionary perks such as a vehicle that is not necessary for the business or non-business travel, etc. Normally, small businesses are priced based on a multiple of that SDE number, typically 2-3x.

Hope this helps

Sean Lacy, CBI
Horizon Business Investments

Dec 1, 2009
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Maricopa County, AZ

OK. "SDE" relates to "Cash Flow," so it means "Seller's Discretionary E," Now, what's the "E" mean?

Dec 1, 2009

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