The Business
SDE is pretax earnings plus one owner's compensation, plus interest, depreciation, amortization, and documented discretionary items. If you only have EBITDA, add back the owner's salary to get here.
The Capital Stack
Guaranty fees are set by the SBA each fiscal year and have changed repeatedly. Confirm the current schedule with your lender before relying on this figure. Full standby on the seller note is what most lenders require if the note is being counted toward the equity injection.
Does It Cash Flow?
DSCR
0.00x
lenders want 1.25x
Cash to close
$0
equity plus costs
Annual debt service
$0
Cash flow to you
$0
after salary and debt
Return on your cash
0.0%
Price multiple
0.0x
of SDE
Sources and Uses
Full Financing Analysis Full Report
Debt Service Detail
Five Year Cash Flow
| Year | SDE | Debt service | Your salary | Free cash | DSCR |
|---|
Sensitivity: DSCR by Price and Rate
| Price |
|---|
Green clears the 1.25x most lenders underwrite to. This grid is the negotiation: if the rate moves against you between LOI and closing, the price has to move with it, and this shows exactly how far.