Underwrite a Deal
The Target
Verdict
- Watch1 PE firm already consolidating this industry
SRM Concrete. Expect competition on price, and a plausible exit if you build something bigger.
- GoodDSCR after your salary is 2.29
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, a $100,000 owner salary, $200,000 of cash, and a 10% seller note, the most this business can carry at a 1.25 DSCR is $2,561,235. The ask sits $1,061,235 under it.
Structure
- Equity (your cash)
- $200,000
- Seller note
- $150,000
- 7(a) loan
- $1,150,000
- Annual debt service
- $174,813
- DSCR
- 2.29
- Implied multiple
- 3.00x
- Cited band
- 2.29x–3.56x SDE
Context
- Industry charge-off
- not measurable
- State median loan
- –
- State FY2025 loans
- –
More in Diligence & Close the Deal
Deal Tools
The checklist, the math, and the terms.
LOI Terms Worksheet
Decide the terms before the template.
Diligence Checklist
Every diligence workstream, through to close.
Document Requests
Ask for it once, then track what arrives.
Scope the QoE
Price the earnings work, then the deal.
Reading the FDD
The layer a franchise resale adds.
Deal Resources
The advisors your closing actually hires.
What the Loan File Contains
What a lender asks for and what a no means.
Lenders
Filter the verified lenders by your deal.
SBA Acquisition Calculator
Which limits the deal: your cash or the earnings.
Deal Outreach Templates
Engaging advisors and running the workstreams.