Underwrite a Deal

The Target

Verdict

• WatchIndustry charges off at 4.38% against 3.51% across all industries

  SBA acquisition loans in this industry fail more often than average. Not a veto, but underwrite the downside case seriously.

• WatchOwnership or licensing is restricted here

  Most states require a licensed qualifier to hold the contractor license the business operates under.

• GoodDSCR is 2.86

  Above the 1.25 rule of thumb.

• GoodAsking 3.0x, inside the cited band

  Priced where this industry trades.

The Number That Should Set Your Offer

At $500,000 of SDE, $200,000 of cash, and a 10% seller note, the most this business can carry at a 1.25 DSCR is $3,145,989. The ask sits $1,645,989 under it.