Business Acquisition Calculator
Underwrite purchase price, financing, debt service, DSCR, and buyer cash flow.
Business Acquisition Calculators
Test whether a small-business acquisition pencils after valuation, buyer equity, debt service, seller financing, and operating cash flow.
Decision workflow
How to use this toolkit
- Normalize earnings and establish a valuation range.
- Build sources and uses for buyer equity, senior debt, and seller financing.
- Calculate DSCR and buyer cash flow.
- Investigate risks through diligence and document the decision.
Key terms
Sources and uses
A reconciliation of purchase costs with equity and financing sources.
Cash flow after debt
Operating cash flow remaining after required principal and interest.
Cash-on-cash return
Annual buyer cash flow divided by cash invested.
Worked decision example
A deal priced at 3.0x SDE can still fail if replacement management, maintenance capex, working capital, and combined debt service consume the apparent earnings.
Common decision mistakes
- Underwrite the downside case before negotiating the upside.
- Keep valuation, financing, and diligence in one decision trail.
- Set a maximum price and explicit walk-away conditions.
Business Acquisition Affordability Calculator
Estimate buying power from available equity, financing percentage, and target DSCR.
Business Valuation Calculator
Estimate a small business valuation range from normalized SDE or EBITDA.
SDE Calculator
Calculate seller's discretionary earnings from net income and add-backs.
DSCR Calculator
Calculate debt service coverage ratio and cash flow after debt service.
Seller Financing Calculator
Model seller-note payments, interest, and balloon balance.
Purchase Price Multiple Calculator
Calculate implied SDE, EBITDA, and revenue purchase multiples.
ROI Calculator
Calculate return on investment and annualized ROI.