Deal Comparer
The week most searchers lose is the one spent flip-flopping between two CIMs. Put both on the same financing assumptions and the question changes from which is cheaper to which can actually carry its debt and pay you.
The Comparison
Deal A
Deal B
Both deals are read at 90% financed over ten years, the standard change-of-ownership structure; coverage is computed after your salary.
Deal A · Multiple
2.86x
Price over SDE
Deal A · Debt Service
$136,810
On a $900,000 loan, yearly
Deal A · Coverage After Salary
1.68x
$93,190 cushion a year
Deal B · Multiple
2.88x
Price over SDE
Deal B · Debt Service
$102,607
On a $675,000 loan, yearly
Deal B · Coverage After Salary
1.36x
$37,393 cushion a year
The Reading
Both cover. Deal A leaves the wider cushion after salary and debt service, by about $55,798 a year. The cushion is what survives a bad quarter; the multiple is what you brag about.
Inputs travel in this page's address, so a comparison can be shared by copying the URL. A reading is a screen, not diligence: the winner still earns the full underwrite.