Shareholder's discretionary cash flow

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'Shareholder's Discretionary Cash Flow' or "Seller's Discretionary Cash Flow" or "Owner's DCF" or "Owner's Earnings" are terms used in small business transactions to measure the true cash flow of a business to the owner. Unlike larger companies which use EBITDA to show cash flows for investors, this method measures the sum of all cashflows that accrues to a working owner[1].

SDCF is used primarily by business brokers in situations where the business acquirer is buying a job.

[edit] References

  1. ^ Elite Mergers & Acquisitions: M&A Advisor: NI EBIT EBITDA SDCF
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