DealUnderwriter — Plain-English Deal Analysis for First-Time Buyers

🔗 Auto-fill from listing URLBETABizBuySell · LoopNet

Paste a listing link to auto-populate fields.

💡 Key Metric Glossary (click to expand)

EBITDAEarnings Before Interest, Taxes, Depreciation & Amortization. The primary measure of business profitability used in valuations.

DSCRDebt Service Coverage Ratio = EBITDA ÷ Annual Debt Service. Must be ≥ 1.25 for SBA loans. Below 1.0 means negative cash flow after debt.

IRRInternal Rate of Return — full-period annualized return. Target ≥ 20% for SMB acquisitions.

EBITDA MultiplePurchase Price ÷ Annual EBITDA. Industry avg is 3–5×. Below industry avg = potential value buy; above = paying a premium.

SDESeller's Discretionary Earnings — EBITDA + owner's compensation. Used for small owner-operated businesses (< $1M revenue).

Business Name / Description

Industry

Monthly Revenue ($)

Gross Margin

Fixed OpEx / mo ($)

Listing / Asking Price ($)

Seller's asking price. We'll calculate your max offer based on return targets.

Loan Amount ($)

Interest Rate (annual)

Enter deal details above to generate an AI investment memo.

Investment Narrative

This Professional Services business is offered at —x EBITDA, at the 4.0x industry average. At — in annual revenue with a — EBITDA margin, the business generates — in free cash flow after debt service (DSCR: —). SBA financing at 10% equity injection requires — down. Verdict: Material risk flags identified — do not proceed without significant price reduction or structural protections.

Risk Factors1 factors · 0 high

🟡 1 medium severity

🟡Verify Revenue Concentration

Business revenue may be concentrated in a small number of customers or contracts. Loss of a key customer can rapidly impair cash flows.

→ Request customer concentration analysis. Flag any customer >15% of revenue in your diligence.

SBA Financing Analysis

Industry Benchmarks

Due Diligence ChecklistSaved locally

0/100

HARD PASS

🧬DealDNA^™

??----F-Q2

Unclassified

Not enough signal

Insufficient data to assign a reliable archetype.

Confidence

20%

Very low confidence

Moat^™

35/100

Competitive durability

Exit Options

0 / 4

Realistic exits

💡 Deal Intelligence

→Action Item — Overall

This deal has fundamental return challenges. Consider: (1) significantly lower purchase price, (2) value-add renovation to increase NOI, (3) seller financing at below-market terms, or (4) passing on this deal.

IRR

—

target ≥ 15%

EBITDA Multiple

—

Ask ÷ EBITDA · benchmark 4.0x

Min DSCR

—

target ≥ 1.25

Avg Monthly FCF

—

EBITDA − debt service

MOIC

—×

Year-1 EBITDA

—

Business Underwriter