DealScreen · Sample
Established HVAC Contractor
Palm Springs, California · NAICS 238220
Advance to diligenceDeal strength
78
Data coverage
84
Reliability
72
Asking price
$650,000
Seller-stated SDE
$240,000
Price / SDE
2.71×
Price / revenue
0.54×
The Economics Justify a Controlled Next Step—Not an Unconditional Offer.
At $650,000 and seller-stated SDE of $240,000, the listing implies 2.71× SDE. With 20% down, this sample produces 2.85× indicative coverage before taxes, replacement management, capital spending, and working-capital changes.
Recommended posture
Request the evidence package, validate normalized earnings, and use the coverage-constrained price as a negotiating reference—not a valuation conclusion.
Financing Sensitivity
Illustrative 10-year amortization at 10.5%.
| Down payment | Cash required | Loan amount | Annual debt service | DSCR |
|---|---|---|---|---|
| 15% | $97,500 | $552,500 | $89,528 | 2.68× |
| 20% | $130,000 | $520,000 | $84,263 | 2.85× |
| 25% | $162,500 | $487,500 | $78,997 | 3.04× |
| 30% | $195,000 | $455,000 | $73,731 | 3.26× |
Downside test
Earnings Resilience
Seller-stated SDE
$155,737 after debt
2.85×
10% decline
$131,737 after debt
2.56×
20% decline
$107,737 after debt
2.28×
30% decline
$83,737 after debt
1.99×
Evidence request package
Before Final Terms
- 01Three years of federal business tax returns
- 02Monthly P&Ls and balance sheets plus current YTD
- 03SDE bridge with support for every add-back
- 04Bank and merchant statements
- 05Revenue and gross profit by customer and service line
- 06Lease, amendments, CAM, and assignment terms
Government-data context
Named Sources, Dates, and Limits
County population, income and labor-force context.
NAICS 238220 establishments, employment and payroll.
Official county and tract matching for the supplied address.
ACS five-year population change shown with its vintage.
Facility and compliance search; not an environmental assessment.
Manual transferability confirmation required.
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