Diligence Analysis

The listing says $400K. What does the tax return say?

Upload the deal's documents. We rebuild the earnings from the source, test every add-back, and cite every figure. It takes minutes.

Verified SDE

Disputed
$310K$400K

Recomputed from the 2023 tax return

The multiple you'd actually pay3.7×

01What you upload

Whatever the broker has given you.

PDF, image or spreadsheet. More documents means more we can cross-check. A report built on the offering memo alone is a weaker report, and it says so.

Profit & loss

Three years if you can get them. Each year is read on its own, then judged as a trend.

Tax return

What the seller filed with the IRS. This is what the P&L gets measured against.

Offering memo / CIM

The seller's own story. Useful, and the thing the other two most often contradict.

Documents

Drop the deal's files

  • 2023_tax_return.pdf
  • P&L_2021-2023.pdf
  • offering_memo.pdf

02What the engine does

Five steps, and none of them guess.

  1. 01

    Classify

    We identify each document and the years it covers, so a 2021 P&L never meets a 2023 return.

  2. 02

    Extract

    Figures are pulled page by page. Each citation travels with its number, back to the source line.

  3. 03

    Reconcile

    The P&L against the tax return, the offering memo against both. Disagreements become findings, not averages.

  4. 04

    Recompute SDE

    Earnings are rebuilt from what the documents support. Every claimed add-back is accepted, questioned or rejected.

  5. 05

    Score and conclude

    A Scout Score on the verified earnings, the risks that matter, and the diligence plan. Premium adds a reasoned verdict.

Verified SDE

Earnings disputed
$310K$400K

Recomputed from the 2023 tax return

Stated multiple2.9×
Real multiple3.7×

Recommendation

Pursue with conditions

A real business — at $310K, not $400K. Reprice before you sign.

  • Listing revenue $120K above the tax return
  • 16 years, ~40% recurring maintenance revenue

03What you get

A report that opens with the answer.

Not forty pages you have to mine. The verdict and the verified number come first. The evidence sits underneath, in the order you'd want to challenge it.

71
Pursue with conditions

A real business — at $310K, not $400K. Reprice before you sign.

Scout Score computed on the verified earnings, not the listed ones

As listed

$400K

Offering memo, p.4

As verified

$310K

2023 Form 1120-S, line 21

  • The Adjustment

    As listed versus as verified, with every step between the two figures.

  • Earnings quality

    How much of the profit is durable, and how much depends on the current owner.

  • Add-backsPremium

    Each claimed add-back accepted, questioned or rejected, with the reasoning.

  • EconomicsPremium

    The multiple, debt service and payback against the verified earnings.

  • Risk profile

    What could go wrong, ranked. And what is genuinely a strength.

  • Diligence plan

    The questions to put to the seller, and the documents still missing.

Read a whole one.

A complete Diligence Analysis on a fictional deal. Rendered by the same component that renders yours, not a screenshot.

Open the sample report

05Your documents

They're yours. We don't train on them.

Private to you

Visible only to you and anyone you explicitly share a deal with.

Encrypted

In transit and at rest, from the moment you upload.

Never used to train AI models

Your deal's documents train nothing. Not our models, not anyone's.

Deletable any time

Remove a document, or a whole deal, whenever you want.

More detail in our Security and Privacy Policy pages.

06What it costs

Depth is the paid axis, not access.

Free runs one complete verification: the whole report, on a real deal. Standard verifies deals as you find them. Premium adds full add-back scrutiny, cross-document reconciliation, and a reasoned verdict.

Find out what the numbers really say.

Your first deal verification is free. The full report, on a deal you're actually looking at.

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