Will the dealwash its own face?
An early, honest screen that shows whether the business you are looking at can service the borrowing you would take on to buy it, out of the cash it generates, before you spend a penny on due diligence.
- Fixed fee
- Agreed in writing before we start, never on a running clock.
- Early screen
- Built to catch an unaffordable deal before you are committed.
- Working Excel model
- Change any input and the whole model recalculates.
- Cautious by design
- Its job is to flag concerns, not to sell you the deal.
Can the business actually afford the deal?
Before you agree heads of terms, before you spend money on due diligence, there is one question worth answering quickly and honestly: can the target service the borrowing you would take on to buy it, out of the cash it generates? The Deal Affordability Cash Flow is built to answer exactly that, early, so you know whether an opportunity is worth taking further.
It is an early screen, not a forecast. We take three years of the target's filed accounts and an outline of how you would fund the purchase, and we build a two year monthly cash flow that shows whether the cash the business produces looks capable of covering the debt. It is deliberately quick and deliberately cautious, because its whole job is to catch a deal that cannot pay for itself before you are committed to it.
Built on filed accounts, at speed
This model rests on the target's published accounts rather than verified due diligence, which is what lets us turn it around quickly and cheaply. It is a screen to inform your early thinking, not the validated forecast a lender will want, which is our separate Acquisition Cash Flow Model.
A clear, early answer
Kept deliberately focused on the question that matters at this stage.
A two year monthly cash flow model
A fully working Excel model, projected month by month across two years, in which you can change any input and see the whole model recalculate.
A scenario switch
The ability to flex the key assumptions and see how the affordability picture changes if trading is softer than hoped.
A short written report
Two to three pages in our house style, setting out the basis of the screen, what the model indicates, and the concerns you should be aware of.
An honest read on the debt
A clear view of whether the cash the business generates looks capable of servicing the borrowing you are proposing.
Where to next
The basis of this screen
This is an early affordability screen built on the target's unverified filed accounts and an outline funding proposal, not a forecast resting on due diligence, and not advice on whether to proceed. A cash flow model is a projection built on assumptions, and it shows the position those assumptions imply, not the position that will arise in practice. It does not tell you whether to buy the business or take on the borrowing. That decision remains yours, ideally taken with the benefit of full due diligence and, where lending is involved, our Acquisition Cash Flow Model.
Wondering if a deal can pay for itself? Let's find out early.
Book a free intro call and we will explain how the affordability screen works and what it would cost for the deal you are looking at. A quick chat about the service and a quote, no pressure.