I would like to understand how the owner’s compensation “add back” from the valuation indicative of a 100% interest in the business should be handled if this valuation were to be used to establish a price for a minority interest in the business instead.

Given that the current owners would continue under their current salary arrangement in perpetuity even after my acquisition of a minority interest, I feel the calculation of the SDE valuation should not include an "owner's compensation" adjustment. In other words, the owner's compensation "add back" should be removed to calculate SDE. Thoughts?