Does this acquisition pencil out?
Enter the seller’s earnings, your price and the loan terms. See debt coverage for every year of the hold, cash left after loan payments, your projected return, and the most you can pay and still hit your target. Free, no sign-up, and nothing you enter is stored.
How it works
SDE is converted to EBITDA by deducting a market salary for a general manager. Earnings grow at your rate; each year deducts cash taxes and capex, then senior and seller-note payments (the note can be on standby).
DSCR = cash available for debt service ÷ scheduled principal and interest. IRR and MOIC use your cash at close, annual cash after debt service, and exit equity (exit multiple × final EBITDA − remaining debt).
The max price solves for the purchase price that returns exactly your target IRR with debt held fixed.
Questions
What is a good DSCR for an SBA or bank acquisition loan?+
Most lenders want at least 1.25x in every year; 1.5x or more leaves room for a bad year. The tool flags any year below 1.25x.
Should I use SDE or EBITDA?+
Use SDE for owner-operated businesses listed by brokers, and enter what it would cost to hire a manager to replace the owner. Use EBITDA when management is already in place.
Is my data stored?+
No. Inputs are sent to the Acquifolio calculation API to compute the result and are not saved. Shared links carry the inputs in the URL only.
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