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Before You Buy: Deal Reality Check
Screen seller earnings before buying a small business
2 followers
Screen seller earnings before buying a small business
2 followers
Buying a small business? Test the seller's earnings claim before paying for full diligence. This $19 kit helps you reconcile add backs, accept or reject each item, and see how the asking-price multiple changes after owner replacement cost and maintenance capex. Includes an Excel screen, a prioritized 13-point checklist, a red-flag log, and a fictional worked case. Best used with the seller's add-back schedule or CIM. Educational first pass, not an appraisal.
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Hi, I’m Mariano from Second Look Press. We built this kit around a question buyers face early: how much of the seller’s reported earnings holds up when you examine the add backs?
In our fictional BrightClean case, a $2.4 million asking price looks like 3.87× the seller’s $620,000 SDE. The seller proposes $90,000 in add backs, but the first review accepts only $35,000. After estimated owner replacement cost and maintenance capex, the price is 6.15× a $390,000 cash proxy.
The Excel workbook makes each step visible. A short PDF guide adds a prioritized 13-point checklist and a log for unresolved questions. This is an educational first pass; it doesn’t verify the underlying statements or replace professional due diligence.
If you’ve evaluated a business from a listing or CIM, which earnings claim would you test first?