Is this business worth acting on?

Enter what you know about the deal. ADD gives you the numbers that tell you what to do next, in plain language. Free, no sign-up.

Start with a listing

Paste the listing text, or add screenshots of it. We fill in what the listing shows, and you check every number before it is used.

Listing text

1The business

What kind of business is it, and what is the asking price?

Type of business

Asking price

Real estate included in the priceLeave blank if the building is not part of the sale

Rent the business will pay for the buildingOnly when real estate is in the price. Leave blank if not known. Enter 0 if the earnings already pay it.

2Sales

Total sales for each year. Use the tax return if you have it.

This year

Last year

Two years ago

3What the owner earns

Start with the profit on the tax return, then add back what the owner took out. This is the business's real earning power.

Net profit on the tax return

Owner's salaryPaid to the owner

DepreciationNon-cash expense

InterestOn the owner's loans

Owner perksPersonal car, phone, travel

One-time costsWon't happen again, like a lawsuit or remodel

Owner's earnings

Already have the owner's earnings (SDE)? Enter it instead.

Owner's earnings, this year

Owner's earnings, last year

EBITDA, if owner's earnings are not givenPay for running the business is already in it, so it is not subtracted again.

4Who runs it

Someone has to do the owner's job. Fair pay for that work is a cost, even if it is you.

Owner's hours a week

hrs

After the sale, who runs it?

Fair yearly pay for running itWhat you would pay someone to do the owner's job. If a manager is already in place, enter their current pay. It is already in the books and is not subtracted again.

5Who pays for it?

Three sources pay the asking price: your cash, the seller, and a lender. They always add up to the price. Ask the seller if they will finance part of it.

Self

Your cash toward the price

Percent of the priceDefault 10%
(Assumed)

Seller

The seller lets you pay part of the price over time

AmountBlank or 0 if none

RateUntil the seller says
(Assumed)

YearsUntil the seller says
(Assumed)

When the seller is paid

The seller is paid each month while the lender loan runs. The business must earn both payments.

Lender

SBA or bank loan. The amount is the rest of the price.

RateDefault 10.5%
(Assumed)

YearsDefault 10 years
(Assumed)

Closing costsDefault 4%
(Assumed)

Cash reserveDefault $10,000
(Assumed)

6Costs and risks

Leave a box blank if you don't know. It shows up as a question to ask, not a pass.

Yearly upkeep spendingEquipment, vehicles, fixtures

Repairs due in 2 yearsKnown replacements

Cash to run day oneInventory, receivables

Not included in the priceInventory or receivables the listing names. A minimum, not the full amount.

Number of locationsLeave blank if one

Gross marginSales minus cost of goods

Largest customerShare of sales

Years left on lease

yrs

Do customers buy because of the owner personally?

Does family work in the business?

Is anything sold separately with no price stated?

7Your cash

How much cash can you put into this deal in total?

Cash available

Is this business worth acting on?

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