M&A Financing Calculator
Model different financing structures and understand the true cost of acquisition capital
Deal Structure
Down Payment: $400,000
Purchase Multiple: 4.0x
Financing Sources
SBA 7(a) Loan
Bank/Asset-Based Loan
Seller Note
Earnout
Financing Analysis
Payment Schedule
Cash Flow Analysis
Scenario Comparison
| Metric | Current | Conservative | Aggressive |
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NO ATTORNEY-CLIENT RELATIONSHIP: Use of this tool does not create an attorney-client relationship. No attorney-client relationship is formed until you have signed a formal engagement agreement with Acquisition Stars Law Firm PLLC and paid the required retainer.
NOT LEGAL ADVICE: The information provided by this tool is for general informational and educational purposes only and is not legal advice. Legal advice requires consideration of your specific circumstances, which this tool cannot provide.
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Understanding M&A Financing
SBA 7(a) Loans
- • Up to 90% financing for qualified buyers
- • 10-year terms for business acquisitions
- • Personal guarantee required
- • Business must meet SBA size standards
Seller Financing
- • Typically 10-30% of purchase price
- • Shows seller confidence in business
- • Often subordinated to bank debt
- • Can improve deal terms and tax treatment
DSCR Requirements
- • Most lenders require 1.25x minimum
- • SBA typically requires 1.15x
- • Higher ratios = better loan terms
- • Include all debt service in calculation
Earnout Considerations
- • Bridges valuation gaps
- • Typically 1-3 year measurement period
- • Clear, measurable metrics essential
- • Consider accounting and tax implications