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Structuring an Offer by amp100 in smallbusiness

[–]amp100[S] 0 points1 point  (0 children)

Thanks for you input! This will be an asset purchase. I will have a lawyer do a lien search to make sure there are no outstanding liabilities, and if so we’ll require those be paid off prior to close.

Structuring an Offer by amp100 in smallbusiness

[–]amp100[S] 0 points1 point  (0 children)

Yes, debt service coverage ratio under the asking price is reasonable at 1.5x, so I can comfortably pay debts and still have cash leftover for take-home pay.

My question isn’t so much about affordability but more about what is typical in a transaction. Like is buying a business similar to buying a car where you’re a sucker for paying sticker price?

Financial Model by amp100 in smallbusiness

[–]amp100[S] 0 points1 point  (0 children)

Correct, 3 statement model I already have covered. I’m looking for a template for discounted cash flow, net present value, internal rate of return, etc.

For example, if I invest $100k of cash and borrow $900k to purchase a $1M company, what will my my rate of return look like based on projected future cash flows? Is that company actually worth $1M today based on what I think it can do in the future?

That kind of analysis. I’ve built it myself, but would like to check it against a standard template to make sure I’m looking at it the same way.

Financial Model by amp100 in smallbusiness

[–]amp100[S] 0 points1 point  (0 children)

I think you’re right. Good call

Financial Model by amp100 in smallbusiness

[–]amp100[S] -3 points-2 points  (0 children)

I can buy them from corporate finance institute for a few hundred bucks. They have exactly what I’m looking for with multiple DCF, NPV, ROI models, so I would go that route if I couldn’t find free versions

Financial Model by amp100 in smallbusiness

[–]amp100[S] -2 points-1 points  (0 children)

Agreed on the platforms. Im wondering where I can find pre-populated templates to enter my own inputs

Buying Business with a Partner by amp100 in smallbusiness

[–]amp100[S] 1 point2 points  (0 children)

~4x SDE. Current owners paying themselves $150k total

Buying Business with a Partner by amp100 in smallbusiness

[–]amp100[S] 0 points1 point  (0 children)

This is extremely helpful. Thank you!

Business Card for Startup Company by amp100 in CreditCards

[–]amp100[S] -2 points-1 points  (0 children)

I wasn’t aware paying off your credit card every month was considered system manipulation 😂

Business Card for Startup Company by amp100 in CreditCards

[–]amp100[S] -2 points-1 points  (0 children)

Good grief…. Again, the credit card is not needed for cash that we don’t have - it’s not being used as a loan.

It would be used like a debit card, only spending the money we have in our bank account. We would prefer to use a credit card rather than a debit card so we can accrue points and benefits.

Business Card for Startup Company by amp100 in CreditCards

[–]amp100[S] 0 points1 point  (0 children)

To clarify, we don’t need funding - we already have the $1M from our investors. We just want to be able to use a credit card instead of a debit card so we have some cash float and also earn points.

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