Buyer decision workflow

Verify Seller-Stated SDE

Trace the seller's earnings claim to documents, adjustments and unresolved differences.

The Buyer Question

How much of the advertised SDE is supported, adjusted or still unverified?

When to Use This Workflow

  • The listing relies on add-backs
  • Tax returns and P&Ls disagree
  • The owner performs essential labor

Inputs Required

  • Seller-stated SDE
  • Tax returns, P&Ls and general ledger
  • Add-back schedule and supporting records

Analysis Performed

  • Keep seller, tax-return, P&L, buyer-adjusted and reviewer-adjusted earnings separate
  • Classify each add-back and prevent duplicates
  • Calculate indicative DSCR under multiple earnings definitions

Evidence Used

  • Document-supported extraction with page or worksheet reference
  • Reviewer status and immutable corrections
  • Calculation inputs and formulas

Decision Outputs

  • Normalized earnings bridge
  • Add-back schedule
  • Financial contradiction ledger
  • Seller questions and offer protections

Coverage Limitations

  • This is not an audit or quality-of-earnings opinion.
  • Low-confidence extractions remain in review.
  • Professional accounting and tax review may still be required.

Decision-support boundary: Findings are point-in-time acquisition intelligence, not an appraisal, audit, quality-of-earnings opinion, legal conclusion, lending decision or guaranteed clearance.

Related Buyer Intelligence

Appropriate report

DealProof

Start with the report whose evidence depth matches this decision. Coverage labels and unresolved items remain visible.

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