Price
How much should I pay?
Translate maintainable cash flow, risk, capital needs and financing into a defensible price range.
Evaluate the purchase priceBuy a business
Know what you are buying—not just what the seller is presenting.
Connect sustainable earnings, working capital, hidden obligations, financing and post-close cash needs before you settle on price or waive conditions.
Three financial questions shape the deal.
Diligence
What should I verify?
Test normalized earnings, working capital, add-backs, liabilities and the cash needed after closing.
Review the financial checklistExecution
Can the deal finance itself?
Model buyer equity, lender debt, seller financing, debt service and the first 100 days of cash flow.
Discuss acquisition modellingA buyer needs two views of the business.
Historical statements explain what was recorded. A buyer model asks what will remain after owner changes, normalization, financing and required reinvestment.
- Maintainable revenue, gross margin and operating expenses.
- Defensible owner add-backs and one-time items.
- Normal working capital delivered at closing.
- Debt service, taxes and post-close investment.