Underwrite a Deal
The Target
Verdict
- WatchOwnership or licensing is restricted here
A meaningful minority of states license locksmiths, and commercial accounts often require bonding and background-checked technicians.
- GoodDSCR after your salary is 2.29
Above the 1.25 rule of thumb.
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
- none
Context
- Industry charge-off
- not measurable
- State median loan
- –
- State FY2025 loans
- –
Licensing: Hold or hire the license where required; settle the license question in writing before closing.