Worked business acquisition examples

Hypothetical
£1m earnings, £150k left before other cash needs
Calculate the illustrated bank and seller payments, then identify the cash needs still missing from the remainder.
Reported completed
The reported £1.8m acquisition
Reconcile the reported payment schedule and see how rounded earnings change the purchase multiple.
Hypothetical
£5k a month funds a search, not the acquisition
Compare search duration, monthly spending and the ownership offered to an early backer.
Proposed
£33m debt conditional on £25m equity
See why a large debt proposal can remain unavailable until its equity condition is met.
Hypothetical
Why £1m of machinery supports £640k in the illustration
Follow the reductions from machinery book value to appraisal and potential borrowing.
Hypothetical
When an addback doubles claimed earnings
Test the operating assumption behind a marketing adjustment before using it to value a business.
Hypothetical
A $1.5bn exit that leaves common shareholders nothing
Calculate how the illustrated preference absorbs sale proceeds before common shareholders receive anything.
Hypothetical
The £800k monthly revenue covenant illustration
Calculate a hypothetical monthly revenue floor and distinguish covenant headroom from available cash.
Hypothetical
Bridging a four-times price with a 75% purchase
Follow the proportional price calculation, then examine what the seller still owns and risks.
Hypothetical
Funding a £3.5m purchase
Allocate the illustrated purchase price among bank debt, seller deferral and equity without confusing funding with ownership.
Proposed
A €952k debtor balance is not a €952k lending base
Separate customer invoices from the wider debtor balance before estimating borrowing capacity.
Hypothetical
A £3.5m valuation from two years of earnings
Average the stated pretax profits and compare how the chosen year changes the apparent multiple.