Hi I'm in Australia. I'm currently looking at a business to acquire but I'm getting conflicting advice on how to determine 'my SDE' and multiple to offer rather than the brokers SDE. The Brokers SDE is $840k, and the asking price is $2,750k There are two outgoing working owners. And the broker has suggested a GM could come in and run the business for around $150k per year. What is the best way to think about this and structure my offer? The brokers GM at $150k is ridiculously low - a decent GM would cost $250k to $300k including bonus and retirement plan. My plan would be to become the GM/CEO myself and perhaps hire an assistant to support me at around $150k per year all in. That structure would reasonably replace the two outgoing owners. If I value my own GM role at say $250k, do I include this in the SDE multiple? if not, then the offer would look something like this: $840k - $150k = $690k ($150k for the assistant) $690k x 3.3x = $2,277k (3.3 feels like a fair multiple for this business) Does this logic make sense? This offer is much lower than their asking price so I want to be able to justify it confidently. Thanks!