Search Fund Quality of Free Cash Flow (QofFCF) Solver

Underwrite normalizing capital expenditures to uncover true maintenance capex required to sustain operations vs one-off growth capex to accurately evaluate debt service coverage ratios (DSCR).

Reported Financials & Capex

Reported Adjusted EBITDA ($ USD)

Total Historical Annual Capex Spend ($ USD)

True Maintenance Capex Share (% - e.g. 75%)

Free Cash Flow & Debt Service Coverage

Normalized Free Cash Flow Available for Debt Service

+$2,062,500 Normalized FCF

Required Annual Maintenance Reinvestment

$337,500 Annual Maintenance Capex

Adjusted EBITDA to FCF Cash Conversion Rate

85.9% FCF Conversion Yield