What SDE and EBITDA Mean for Florida Service Business Valuations

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1. 25+ Years of Deal-Making – We know how to position and defend SDE for top-dollar exits

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4. Nationwide Buyer Network – From private equity to individual operators, we bring serious buyers to the table

5. Mission-Driven, Owner-Focused – You’ve built the business—we help you protect the legacy and get paid for it

 

The Meaning of SDE from Your Florida Business Broker

EBITDA Valuation for Service Businesses: What You Need to Know

Let’s skip the fluff.

You didn’t build a service business in Florida to master accounting terms—you built it to generate freedom, cash flow, and eventually, a damn good exit.

But when it’s time to sell, if you don’t understand SDE (Seller’s Discretionary Earnings) and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), you’re walking into a negotiation blindfolded.

At Sailfish Equity Advisors, we’ve helped sell over 1,000 businesses across Florida, and here’s the truth: Buyers don’t care what you think your business is worth—they care about what the numbers say.

Let’s make sure your numbers say the right thing.

Why Valuation Starts with the Right Financial Lens

Every seller asks, “How much is my business worth?”
Here’s the unfiltered answer: It depends on how cleanly you can prove your business’s earning power.

That’s where SDE and EBITDA come in.

Both are tools to strip out noise and show buyers the true profitability of your business—but they’re used in different contexts.

What Is SDE? (And Why It Matters for Florida Service Businesses)

SDE (Seller’s Discretionary Earnings) is the go-to valuation metric for small, owner-operated service businesses in Florida—think HVAC, plumbing, landscaping, cleaning, IT support, or marketing agencies.

SDE tells a buyer:
“If I step into this owner’s shoes, how much can I make in real dollars?”

SDE includes:

• Net income

• Owner’s salary

• Perks (like your truck, insurance, or phone)

• One-time expenses

• Non-cash expenses (like depreciation)

SDE Example (Simple and Real)

Let’s say:

• Net income: $80,000

• Your salary: $60,000

• Owner auto: $6,000

• One-time legal: $4,000

• Depreciation: $5,000

SDE = $155,000

That $155K is what a hands-on buyer will base their valuation on. It’s the number that matters.

What Is EBITDA? (And When It Applies)

EBITDA is for larger, professionally managed companies—often doing $5M+ in revenue or run by non-owner GMs.

Unlike SDE, EBITDA doesn’t add back the owner’s salary or personal expenses. Why? Because in these deals, the buyer usually hires professional management, so the company needs to stand on its own.

EBITDA is common in:

• Private equity acquisitions

• Multi-location operations

• Businesses with passive ownership

• Institutional buyers

If your Florida service business is past the $5M–$10M range, you’re likely being valued on EBITDA—not SDE.

So… SDE or EBITDA? Which Applies to You?

Here’s the quick coaching checklist:

Use SDE If…Use EBITDA If…You’re a hands-on ownerYou’ve built a business that runs without youRevenue is under $5MRevenue is $5M+You run personal expenses through the businessYour financials are fully normalizedBuyer will step into your roleBuyer is an investor, not operator

How Business Brokers in Florida Use SDE and EBITDA

Here’s where most owners screw up:
They look at their tax returns, see a net income of $60K, and assume that’s the business’s worth.

Nope.

That’s tax-optimized data. It’s built to minimize liability—not to reflect actual profitability.

At Sailfish, we recast your financials. We strip out the fluff, rebuild the P&L, and create a clean SDE or EBITDA model that shows buyers the true financial opportunity.

Why? Because you don’t get top-dollar for messy books—you get questions, delays, and discount offers.

How to Find Out What Your Florida Business Is Really Worth

If you’re wondering “What’s my Florida business worth?”—this is the only path that works:

Step 1: Clean your books

Separate personal and business. Organize the chart of accounts. Stop burying things in “Miscellaneous.”

Step 2: Recast your financials

This is where a professional broker steps in. You need to tell the true story of the business, not the tax story.

Step 3: Identify the right multiple

Depending on your industry, size, SDE/EBITDA, and risk profile, your business will trade at a multiple (typically 2–5x SDE, or 4–7x EBITDA).

Step 4: Understand deal structure

All-cash? SBA loan? Earn-out? There are multiple ways to get paid—and the structure can add or subtract six figures.

At Sailfish Equity Advisors, we walk you through every step—confidentially, strategically, and with a focus on getting you paid what you’ve earned.

What Affects Your Multiple?

Want to push your valuation higher? Focus here:

• Recurring revenue – Service contracts, maintenance plans, subscriptions

• Strong team – A reliable crew adds value (buyers don’t want to recruit)

• Owner independence – The less you’re needed, the more your business is worth

• Clean systems – If you’ve got SOPs, scheduling software, and CRM tools, buyers love it

• Growth potential – Add-on services, new regions, or digital marketing upsides

If your business is clean and scalable, buyers will compete. If it’s chaotic, they’ll walk—or lowball you.

Sailfish Equity Advisors: Florida’s Go-To Business Brokerage

We’re not paper-pushers. We’re operators who’ve built and sold businesses ourselves.

Why Florida Service Business Owners Choose Sailfish:

• Over 1,000 businesses sold

• 25+ years of experience in Florida's service economy

• Experts in SDE and EBITDA valuation

• Confidential, no-nonsense process

• Nationwide buyer network—individuals, strategic acquirers, and private equity

We help you turn decades of sweat equity into a smart, well-structured exit.

Final Word: Numbers Don’t Lie—But They Need a Translator

SDE and EBITDA aren’t just numbers. They’re the story of your business—told in financial language.

If you want to sell your Florida service business, you need someone who can tell that story to buyers, lenders, and investors in a way that builds value and demands respect.

That’s what we do at Sailfish Equity Advisors.

Built by entrepreneurs. Trusted by owners. Focused on your legacy.
Let’s find out what your business is really worth—and how to sell it the right way.