Financial Modeling & Valuation
Why the model matters
A price is only good if the business can carry it
Sellers and brokers price off a multiple. Lenders and you have to live with what comes after: debt payments, your salary, working capital, and the year when revenue dips. Our models are built to answer one question before you sign anything. Can this business pay for itself at this price, with you running it?
What you walk away with
Deliverables
Normalized earnings bridge
Reported profit to adjusted earnings, line by line, with each add-back marked as supported, arguable or not accepted.
Three-statement model
Income statement, balance sheet and cash flow by month for the first year and by year after that, tied to the financing structure.
Debt service view
SBA and seller note payments, coverage ratios, and how much room is left in a bad year.
Downside cases
What happens if the top customer leaves, margins slip or a key employee walks. You see where it breaks.
Valuation range
A range based on earnings, comparable deals where we can find them, and what the cash flow supports, with our view on where to start the offer.
Lender-ready summary
A short write-up of the numbers that a lender or investor can follow without opening the spreadsheet.
How we build it
Models are built from the seller’s tax returns, financial statements and bank data, not from the CIM alone. Where the numbers disagree, we show you where and by how much. You keep the model and can change any assumption yourself.
Questions
Common questions about models
Can you work from just the CIM?
For a first look, yes. A model you would borrow against needs tax returns and monthly financials.
Is this a quality of earnings report?
No. It is an advisory model. For larger deals or when a lender requires it, we help you scope a formal QoE with a CPA firm.
How long does it take?
A first-pass model usually takes days, not weeks, once we have the documents. Turnaround depends on how clean the seller’s books are.
Ready for your next acquisition?
Whether you are starting a search, evaluating a target or preparing to run a business you just bought, let’s define your next steps.