Search Fund & Micro-PE Acquisition Solver

Underwrite buying established cash-flowing small businesses ($750k–$3M SDE), SBA 7(a) leverage, seller earnouts, and equity multiple returns.

Target Company & SBA Debt

Target Seller Discretionary Earnings (SDE / EBITDA $ / yr)

Acquisition Valuation Multiple (e.g. 3.75x SDE)

Buyer Cash Equity Injection ($ - e.g. 10% SBA equity)

SBA 7(a) Loan Interest Rate (% - Prime + 2.75%)

Total Purchase Price (Enterprise Value)

$2,437,500

Year 1 Net Pre-Tax Cash Flow (After SBA P&I)

+$284,500 / yr

Cash-on-Cash Return on Equity

116.7% Cash-on-Cash (0.86 Yr Payback)