How much business could I realistically buy?

Acquisition capacity calculator

Purchase capacity is rarely just the cash in the account. It is equity, lending, what a seller will carry, and how much of the earnings the bank wants left over. This puts a realistic number on it.

About 3 minutes. Nothing is saved and nothing leaves this page.

Your funding

Cash or equity available

Transaction costs to allow for

Working capital to keep aside

What the business will need to keep running after settlement.

Seller finance you expect to negotiate

% of price

The kind of business you are looking at

Expected price as a multiple of earnings

Interest rate on borrowings

Loan term

years

Minimum debt service cover

How many times the earnings should cover the loan repayments. Lenders usually want at least 1.5.