Buying a Business:
Choose Your Toolkit

Each business type has its own financial logic. Pick your cluster for a tailored calculator and acquisition guide.

Digital Businesses

Online & Software Businesses

Revenue driven by traffic, subscriptions, or digital transactions. Valued on revenue multiples and growth trajectory.


Physical Businesses

Brick-and-Mortar & Operations

Asset-intensive businesses where working capital, capex, and operational leverage drive value. Valued on EBITDA multiples.


Supporting Tools

Use alongside any cluster

These tools work across business types to deepen your analysis.

Acquisition workflow

Build a buyer-grade view before the LOI

A strong acquisition screen answers four questions quickly: what is the business worth, how much debt can it carry, how much cash does it need to operate, and what can go wrong after close.

Start with the business model

A SaaS business, retailer, manufacturer, distributor, content site, and services company can all show the same EBITDA while carrying very different risks. Pick the calculator that matches the operating model so the first pass uses the right drivers.

The purpose of the hub is to keep the analysis specific. Generic multiples are useful only after you understand what creates the cash flow.

Move from SDE to free cash flow

Small-business listings often lead with SDE. Buyers should bridge that number to cash flow after owner replacement cost, taxes, debt service, maintenance capex, and working capital. The best deal is not the highest SDE multiple; it is the one with durable cash conversion.

Use add-backs only when they are documented and likely to disappear after closing.

Stress-test financing early

Debt can increase equity returns, but it also reduces room for error. Before diligence gets expensive, test whether the business can cover interest, principal, working capital, and a reasonable operator salary.

If a deal needs aggressive leverage to work, use seller financing, contingent consideration, or a lower price instead of forcing the model.

Tie diligence to the model

Every line in the model should create a diligence request. If gross margin matters, ask for invoices. If retention matters, ask for cohorts. If working capital matters, ask for monthly balance sheets.

The model is useful because it tells you where evidence matters most.

Frequently asked questions

What is the first calculator to use?

Start with the business-specific calculator, then use the LBO model and working capital cycle calculator if the initial screen looks attractive.

Is SDE enough to value a business?

SDE is a starting point, not a finish line. Buyers should adjust for replacement labor, capex, taxes, debt service, and working capital.

How much debt is too much?

Too much debt is any structure that leaves thin coverage after conservative cash flow assumptions. A lower price is usually safer than a fragile capital structure.

When should I use seller financing?

Seller financing can bridge valuation gaps, align incentives, and reduce bank debt. It is especially useful when some risk cannot be fully proven before closing.