CONCEPT #28 OF 100 · Legal, CPA & Financial Advisory · LAYOUT: split_settlement
Main-Street Business Acquisition LOI & Seller's Discretionary Earnings (SDE) Add-Back Audit
Standard / Reference: SBA SOP 50 10 7.1 Cash Flow Verification · Exclusive 45-Day Due Diligence Lockout
Why professionals use this template: r/smallbusiness top viral threads (`BUSINESS SOLD!`, `How much would you pay for this cleaning business?`, `wellness business with 1–2 years left on lease`): buyers verifying SDE add-backs and lease assignment contingencies.
144-DPI VECTOR PREVIEW · PAGE 1 OF 1
ACROFORM READY
Included Financial Metrics & Line-Item Schedule
Target Roles: Search Fund Buyers, SBA 7(a) Acquisition Entrepreneurs, Business Brokers & M&A CPAs · Search Keywords: business acquisition letter of intent loi and sde add back worksheet pdf, quality of earnings qoe sde calculator, sba 7a business purchase loi template, cleaning or hvac business valuation worksheet
VERIFIED TTM SDE
$284,000.00 / YR
PROPOSED ASSET PURCHASE
$880,000.00 (3.10x SDE)
SBA 7(a) DEBT + SELLER NOTE
80% SBA / 10% Seller / 10% Eq
POST-DEBT DSCR COVERAGE
1.68x (SBA Min: 1.15x)
| CODE | DESCRIPTION & TECHNICAL SPECIFICATION | BASIS / QTY | AMOUNT / DELTA |
|---|---|---|---|
| SDE-NET | Reported Tax Return Ordinary Business Income (Verified via IRS Form 4506-C Transcripts) | 2025 Form 1120-S | $162,400.00 |
| ADD-OWN | Verified Owner W-2 Officer Compensation, Health Insurance & Payroll Taxes (1 Full-Time Owner) | W-2 Reconciled | +$98,600.00 |
| ADD-DEP | Non-Cash Depreciation, Section 179 Expense & Interest Add-Backs | Form 4562 | +$23,000.00 |
| DIS-PER | Disallowed Unverified Personal Travel/Meals Add-Backs Excluded from Quality of Earnings | Buyer Haircut | $0.00 ALLOWED |
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