Deal Recon Kit by The Morning Deal

Deal Recon Kit

Five tools to read a deal before it reads you

Enter your access password to open this tool. You will find the current password in your members area.

Lost your password? Check your members area, or email support@themorningdeal.com.

DEAL RECON KIT - TRUE CASH TO CLOSE by The Morning Deal

True Cash to Close

The one honest cash number to close an SBA 7(a) deal, in 60 seconds.

Everyone says 10% down. This tool tells you what you actually need in the bank to close the deal and not run out of money on day one, line by line, with a clear yes or no on whether your cash is enough.

Your deal

Asking price = the dollar figure the business is listed for sale at, the headline price the broker or seller is asking. Enter just the number, no commas or dollar sign. Example: if the listing says the business is for sale at 1,000,000 dollars, type 1000000.
$
This is what kind of business it is. Pick the closest match. It sets how many months of cash the business needs to keep running on day one (a manufacturer ties up more cash than a service business). Example: a plumbing or HVAC company is home or field services; a bookkeeping or marketing firm is professional or B2B services. Some types (restaurant, bar, retail storefront, gas station, licensed or medical) are flagged because they are not a fit for a first-time SBA buyer.
Pick yes only if the price you entered also buys the building or land, not just the business itself. Example: a price of 1,000,000 dollars that includes the warehouse the company operates from = yes; a price that is only for the company's customers, equipment, and cash flow, with the building rented = no. Real estate in the price changes the loan, so the tool flags it.
This is the real money you can actually put toward buying this business, sitting in your bank or investment accounts, not money you would borrow. Enter just the number. Example: if you have 200,000 dollars saved that you are willing to spend on this purchase, type 200000.
$
Optional. Closing costs are the one-time fees to get the deal done (lawyer, loan packaging, business valuation, title, filing fees). Leave this blank and the tool uses 3 percent of the price, which is normal. Only fill it in if your lender or attorney gave you a different percent. Example: type 4 if you were quoted 4 percent.
%
Optional. Working capital is the cash the business needs on hand the first day you own it to cover payroll, rent, and bills before customer money comes in. This is the number of months of that cushion. Leave it blank and the tool picks a sensible number for your industry. Only set it if you know better. Example: type 2 for two months of cushion.
mo

Your real number

Enter your deal on the left and tap Show My Real Number. The honest cash to close lands here.