Seller Numbers Stress Test
Do the seller's numbers survive contact?
Enter what the seller claims. This restores an operator's market salary, rebuilds the expense line, tests the debt service, and returns buy, negotiate or walk.
Sample numbers: a bread route deal. Change them to yours.
The deal
Claimed revenue
For a route or a resale business, enter the commission rate. For an operating business selling its own goods, enter gross margin. Leave at 100 if the seller quoted revenue net of cost of goods.
Claimed expenses
Expenses the seller left out
Operator salary
This is the line that decides most deals. If you have to do the work, that work has a wage, and the wage comes out before anything is called profit.
Financing
Lease risk
Enter 0 for both if the business does not depend on a location.
Or start from a deal like these
Verdict
Select Stress test to rebuild the seller's numbers. The result is worked out in the browser, so it needs JavaScript.
This is a stress test, not investment advice.