Business Analysis Example

Southwest USA Business Analysis

Business: Southwest USA Business Analysis

Assumptions

SDI (re-cast) $160,000 Inventory $ 5,000 F,F&E $ 45,000 Working Capital $ 2,000
Fair Mgr Sal $ 12,000
CapEx $ 3,000

Finance yrs 5
Interest rate 8.50%
% down payment 80%

Industry R Code 290
Q Score 1,061
Q Standard 825
Actual vs Standard 128.6%
Industry R Code 290
QR Score 373

Business Fundamentals(1-5) 1=low 5=high
Businessrecords 3
Seller Motivation 3
Location 3
Profit History 4
Asset Quality 5
Time to learn 4
Ind.Attractness 4

Asking Price $707,731
Expected Selling Price Range
Low $541,414
High $636,958
QR Score selling price $601,571

Inventory $ 5,000
FF&E $ 45,000
Goodwill/non-compete $551,571
Total Business Price $601,571

Recast Profits from Current operations $160,000
New Owner Salary ($12,000)
Other adjustments Capital Exp ($3,000)
Annual Debt Payments ($30,633)
Free cash flow (cash in excess of salary and debt service) $114,367
Coverage ratio(a) 4.73
BDI* Cash total (Salary + free cash) $126,367

Business Price (QM Price) $601,571
Working Capital $2,000
Total Project $603,571

Acquisition Price (includes Inv
& Work cap) $603,571
cash down% 80.00%
cash down $482,857
Debt % 20.00%
Debt amount $118,714
Debt Terms Years 5
APR 8.50%
Annual Debt Service ($30,633)

Equity Appreciation per year
(debt/years financed) $24,143
Salary + Cash in excess of debt service $126,367
Total return (includes salary, free cash $150,510
and Equity build up)
Return on Down Payment 31.17%
Investment ROI (Total return/Sell Price)25.02%

(a) Lenders require minimum 1.3
*Buyer's Descretionary Income

Seller Approval: ____________________________________
Date: _________________



Southwest USA offers complete full line business services for all your needs! We are also real estate licensed in Texas through Southwest USA Realty and Brokerage licensed #506951

A two page business analysis report for only $99.00!



Southwest USA Business Brokers is real estate licensed under the name of Southwest USA Realty and Brokerage for all your commercial real estate needs!

BizBuySell

IBBA

And also...

Texas Real Estate License #0121134 under Southwest USA Realty and Brokerage





6401 Eldorado pkwy, suite 112, McKinney, TX 75070

southwestusabiz.com © 2002 Southwest USA Business Brokers | Disclaimer

Powered by BizBuySell.com