"10% down" isn't the whole check.
Illustrative example, $1,000,000 business with an SBA loan:
Down payment $100,000
Closing costs $30,000
Working capital $60,000
Cash at close: $190,000
Free calculator: https://t.co/llJ1AR8sOi
First-deal mistake: trusting the CIM's P&L without checking the tax returns.
Illustrative example:
P&L revenue: $1,200,000
Tax return: $1,080,000
A 10% gap needs an answer before you offer.
See the side-by-side: https://t.co/D0e4SyYU3M
Reading more listings than you have time to model?
Paste a listing link or broker email into Rooster's free quick screen: a verdict, the concerns, fit with your buy box, and questions for the broker. Three free a month.
SBA lenders check one ratio first: debt service coverage.
Cash flow after your salary ÷ a year of loan payments.
Illustrative example: $300,000 ÷ $200,000 = 1.50x. Most want 1.25x or the deal doesn't get funded.
One customer is a big slice of revenue? Ask before you offer:
1. How long a customer?
2. Contract, and does it transfer?
3. Who owns the relationship?
4. Share growing or shrinking?
5. What if they leave?
Before you sign an LOI, confirm:
1. Who holds the licenses
2. Which add-backs have paperwork
3. What if the top customer leaves
4. Working capital at close
5. Debt service coverage (SBA lenders want 1.25x+)
Add-backs are where CIM numbers get generous.
Untick the ones you don't believe and SDE, the multiple, and your financing all recalculate.
Illustrative example: drop a $12,000 truck, SDE goes $475,000 → $463,000.
The seller's SDE assumes you run the business.
Hiring a manager? Take their salary out first.
Illustrative example: $475,000 SDE - $85,000 manager = $390,000.
How to use Rooster:
1. Set your buy box (free)
2. Quick-screen listings (free, three a month)
3. Full analysis on the keepers ($49)
4. Untick add-backs, log broker answers
5. Pass with a reason, or draft the LOI
Rooster is built for first-time buyers looking at $500K–$5M businesses, self-funded or with an SBA loan and a seller note.
You shouldn't need to be an accountant to get a first read on a deal.
Not sure what you can afford? Free calculator, no account needed.
Is this deal worth a week of your time?
Upload the CIM to Rooster and get the real cash flow (with page sources), add-backs you can reject, a fit score, 4 ways to finance it, and your walk-away price.