Glossary · Reading the business
In short
Casual term for SDE or adjusted EBITDA — the yearly cash an owner-operator takes out.
Owner earnings is an informal term, not a precise accounting measure — which means sellers sometimes use it loosely. When you see it in a listing, ask whether it means SDE (with the owner's salary added back) or adjusted EBITDA (without). The difference matters because those two numbers can diverge significantly depending on how the seller is compensated. Always reconcile the number to the tax returns and bank statements.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-14 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
Pressure-test the numbers before you make an offer
Send us the asking price and the seller's cash flow — we'll show whether the deal services SBA debt and where the add-backs are likely to hold up.
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