Thinking about selling your business? One of the biggest challenges is knowing what it’s really worth—and being able to show that value clearly to potential buyers.

At Sherpa, our AI-powered, commission-free platform helps you build a compelling, data-backed listing that stands out in the business sales market. And it all starts with one crucial number: SDE.

What is SDE and Why Does It Matter?

SDE (Seller’s Discretionary Earnings) is the most important figure when it comes to valuing a small to medium-sized business.

It takes your net profit and adds back owner-specific expenses—things like:

• Your own wage or super

• Personal vehicle or travel costs

• Interest and depreciation

• One-off or discretionary spending

This gives buyers a clear picture of the true earning potential of the business if they were to take over.

Why You Can’t Just Use Net Profit

Most business owners pay themselves through the business and might cover personal costs through it too. That’s normal—but it can make your profit figures look lower than they really are.

That’s where SDE comes in. It normalises your numbers so buyers can see the full value of what they’re getting. It’s the standard method used across the business sales industry—by brokers, accountants, and buyers alike.

How Sherpa Uses SDE to Help You Sell

At Sherpa, we:

• Calculate your SDE using your real financials and AI-driven analysis

• Show buyers clear, transparent data

• Apply the right multiple to generate a market-based valuation range

• Include your SDE in your business profile so buyers can compare it confidently

All of this helps buyers see the value you’ve built—making them more likely to engage and make a serious offer.

Sell Your Business, Commission-Free

Sherpa gives you the tools to sell your business professionally—without paying expensive broker fees.

✔ No commission for sellers
✔ No commission for buyers
✔ Transparent pricing
✔ AI valuation included
✔ Listings published to 8+ business-for-sale sites

Ready to Sell?

Sherpa makes it easy to value your business, attract buyers, and manage the process—step-by-step and fully supported.