Deal Calculator & LOI

Model the offer before you make it.

Change the terms and watch what they cost you — against the earnings we verified, not the ones the listing claimed.

Your offer

$980K$1.15M
Cash to close
$172K
Equity injection
12.4%
Cash flow after debt
$121K

Clears the SBA minimum injection.

01The arithmetic

What you change, and what moves.

A price only means something alongside the structure that pays for it. The calculator holds both at once. You find the offer that works instead of guessing at one and hoping.

You change

  • Price and down payment

    The two levers you actually negotiate. Everything below moves off them.

  • Seller financing

    Whether the seller carries a note, and how much. Often the difference between a deal that funds and one that doesn't.

  • New-owner salary

    What the business has to pay someone to do the owner's job. Leaving this out is the most common way a deal looks better than it is.

  • The things a lender asks about

    Lease term, inventory in the price, customer concentration, how much revenue recurs, and how dependent the business is on one person.

It moves

  • Cash to close

    What you actually need in the bank on the day, not just the down payment.

  • Debt service

    The annual cost of the structure you just described, and what's left of the earnings after it.

  • Equity injection

    Checked against the SBA minimum, so a structure that won't qualify fails here rather than at the bank.

  • The score at this price

    The Scout Score recomputed for the offer you're modelling. Same engine, different terms.

Terms

Asking price$1,150,000
Your offer$980,000
Down payment15%
Seller note$100,000
New-owner salary$85,000

Outcome

Cash to close$172K
Equity injection12.4%
Annual debt service$104K
Cash flow after debt$121K
Score at this price68

02The SBA test

Find out it doesn't qualify now, not at the bank.

Most small-business acquisitions are financed with an SBA loan, and the loan has a minimum equity injection. The calculator checks your structure against it as you build. A deal that can't be funded the way you've drawn it says so here, while there is still time to redraw it.

Equity injection

12.4% Clears the minimum

Measured against everything you're funding, not the purchase price alone — which is where a structure usually fails.

03Then the letter

Generate the LOI from the deal you just modelled.

The letter of intent comes out of the deal you've been working: the verified figures, the terms you settled on. Not a blank template you re-key everything into and hope you copied correctly.

Letter of Intent — drafted from this deal

A letter of intent is not a binding contract, and this is not legal advice. Have your own attorney review anything before you sign it.

04Why it runs on verified numbers

Modelling the seller's SDE just models their optimism.

If the earnings are overstated, every figure downstream inherits the error: the multiple, the debt coverage, the price you talk yourself into. So the calculator uses the earnings the diligence engine rebuilt from the documents. That is why the two sit on the same deal.

Work out what the deal is worth to you.

Bring a deal, verify the earnings, and model the offer against numbers that were checked.

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