Browse calculatorsBusiness Acquisition Calculators
Business Acquisition Calculator
Combine business earnings with buyer equity, debt terms, and replacement salary to test whether an acquisition pencils.
Business Acquisition Calculator
Enter your numbers and the result updates straight away.
Outputs
Planning estimate only. Verify assumptions before making a financial decision.
A deal can appear affordable on an earnings multiple but fail once buyer salary, debt service, and capital expenditure are included.
How this calculation works
The model treats buyer equity as purchase price less financed amounts and compares adjusted operating cash flow with annual debt service.
How to interpret the result
Run downside cases for lower earnings, higher rates, replacement labor, working capital, and capital expenditure before relying on the result.
Limitations
Results are educational planning estimates. They do not include every tax, legal, accounting, financing, or business-specific consideration and are not professional advice.
Formula and example
A deal can appear affordable on an earnings multiple but fail once buyer salary, debt service, and capital expenditure are included.
Common use cases
- Screen a listing quickly.
- Compare financing structures.
- Identify the maximum defensible offer.
Business Acquisition Calculator FAQ
Why subtract an operator salary from SDE?
If the buyer will not perform the seller’s role personally, the business must fund replacement management before debt service and investor returns.
What costs are excluded from the quick underwriting?
Transaction fees, financing fees, taxes, working-capital adjustments, unexpected capex, and post-close integration costs require separate analysis.
How is Acquisition calculated?
The model treats buyer equity as purchase price less financed amounts and compares adjusted operating cash flow with annual debt service.
How should I interpret the result?
Run downside cases for lower earnings, higher rates, replacement labor, working capital, and capital expenditure before relying on the result.