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Business Acquisition Affordability Calculator
Calculate the purchase price supported by buyer equity and compare it with the price supported by cash flow.
Business Acquisition Affordability Calculator
Enter your numbers and the result updates straight away.
Outputs
Planning estimate only. Verify assumptions before making a financial decision.
$150,000 of buyer equity at a 15% equity contribution supports a $1 million price before fees, subject to cash-flow coverage.
How this calculation works
The tool calculates equity-supported buying power and a separate cash-flow-supported debt amount using the selected loan terms and target DSCR.
How to interpret the result
Use the lower supported price and retain additional liquidity for fees, working capital, and post-close surprises.
Limitations
Results are educational planning estimates. They do not include every tax, legal, accounting, financing, or business-specific consideration and are not professional advice.
Formula and example
$150,000 of buyer equity at a 15% equity contribution supports a $1 million price before fees, subject to cash-flow coverage.
Common use cases
- Set a realistic search range.
- Compare equity and cash-flow constraints.
- Plan reserves for fees and working capital.
Business Acquisition Affordability Calculator FAQ
Why are there two supported purchase prices?
Available equity limits one price; cash flow and debt coverage limit another. The lower amount is the more conservative constraint.
Should all available cash be used as the down payment?
Usually not. Retain liquidity for transaction fees, working capital, capex, and post-close surprises.
How is Affordability calculated?
The tool calculates equity-supported buying power and a separate cash-flow-supported debt amount using the selected loan terms and target DSCR.
How should I interpret the result?
Use the lower supported price and retain additional liquidity for fees, working capital, and post-close surprises.