First call with a seller? Ask:
1. Why sell, and why now?
2. Which tasks only you can do?
3. Whose name are the licenses in?
4. Top five customers' share of revenue?
5. Can you document each add-back?
Full list, free: https://t.co/4Jd4Q1Wa5d
"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.