Business purchase tools

free tools on this site

2

figures they ask you for

17

answers they give back

18

How to buy an existing business with no money, on the worked example

$110,000

Two sheets, one for the money and one for the paper. The acquisition cost calculator is the funding stack: price times the SBA share is the bank note, price times the seller share is the seller note, and what is left of the price is your cash on the deal; add working capital and closing costs and that is the figure you bring to the keys. The two notes are amortised at the rates you enter, 10 years for the SBA note and 5 for the seller's, and the seller's discretionary earnings less your own pay less the two payments is what the business leaves you in year one. The checklist sheet is the diligence file: the asking price as a share of collections, the price and collections per active patient, net income after overhead, and the documents still outstanding against the days left to closing.

The only constants in these sheets are the two payment tables: the monthly payment per $1,000 borrowed over 10 years and over 5 years, at half-point rates between 3% and 15%, computed from the standard amortisation formula. Every other number is worked from the figures you enter: the price, the shares, the rates, the earnings, the documents and the days, with the arithmetic printed beside each answer. The 10 year term is the longest an SBA 7(a) note runs for a purchase without real estate; the defaults are one buyer's worked example, not a price guide and not a lender's offer.