SDE VS EBITDA MULTIPLES

SDE multiples seem to be common for small businesses I've been looking at but I still think it's ridiculous and just a way for the seller to overvalue his/her business. EBITDA multiples of 3-4 seem normal right now but SDE owners are trying to use the same 3-4 range.

Is anyone out there paying 3-4X SDE? Or any experience making offers based on EBITDA multiples when the sellers has an asking price as a SDE multiple?



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