Buy-Side · Step 4

Financial and Operational Analysis

A good business at the wrong price is a bad deal. We test the numbers and the operations before you make an offer.

← Back to Buy a Business: the full six-step process

What we analyze

Earnings quality: are the add-backs real and will the cash flow continue under you?
Debt service coverage at your financing terms.
Customer and supplier concentration.
Owner dependence, staff and management depth.
Equipment condition, lease terms and real estate.

Frequently asked questions

What is debt service coverage?

The ratio of a business’s cash flow to its annual loan payments. Lenders typically want it comfortably above 1.25 before approving an acquisition loan.

Next step

Talk with LegacyOne Business Brokers

2323 Grand Avenue #148, Des Moines, IA 50312 · 515-505-5269 · info@legacyonebb.com