How we check a deal

Boring Deals. It pays from day 1, or we don't buy it.

This checklist is how Boring Deals decides whether a small business is worth buying. A business passes only if its real documents match the broker's numbers and it covers a hired manager and the loan from the first month.

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The 5 numbers

1. Asking price
2. Revenue
3. Cash flow
4. Yearly loan payment
5. What is left after a hired manager and the loan

The day-1 rule

After a hired manager and the loan payment, the business has to cover itself from the first month. If it doesn't, we don't buy it.

The checklist

• ☐ Tax returns (3 years)
• ☐ Bank statements (12 to 24 months)
• ☐ P&L matches the tax returns
• ☐ Customer concentration (no one customer too big)
• ☐ Owner role: can the owner be replaced?
• ☐ Lease: term, rent, can it be transferred?
• ☐ Debt coverage: earns at least $1.25 per $1 of loan payment
• ☐ SBA lender interest
• ☐ Letter of intent (LOI)

The exit rule

Walk away if the tax returns and bank statements don't match the broker's numbers, if one customer is too large a share of sales, or if the business can't run without the current owner.

Disclaimer: Education only. Not an offer to sell or a solicitation to buy any security. Numbers are broker-stated and unverified. No returns are promised.

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