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Total income received prior to any expenses.
1. Take your “Net Income before Taxes”, then,
2. Add up all payments to: owners + interest + allowances for asset depreciation.
3. ADD together 1 + 2 = CASH FLOW (aka Seller’s Discretionary Earnings)

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1. Take your “Net Income before Taxes”, then,
2. Add up all payments to: owners + interest + allowances for asset depreciation.
3. ADD together 1 + 2 = CASH FLOW (aka Seller’s Discretionary Earnings)

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