FINANCING / CAPITAL STACK
GOOD DEAL. WRONG CAPITAL. STILL A BAD OUTCOME.
Understand buyer equity, SBA and conventional paths, seller notes, working capital, debt-service pressure, and how the capital stack changes the return profile after closing.
Financing is part of the underwriting—not an errand after the LOI.
Capital Stack Workstation // TOOL
Can the Deal Carry the Capital Stack?
CAPITAL STACK PLANNER$1,300,000SENIOR DEBT NEED
USES$1,600,000
NON-SENIOR SOURCES$300,000
DEBT NEED$1,300,000
Capital allocation only. Use Deal Reality Check to test debt service and coverage; this planner does not represent lender approval.
SOURCES & USES
Balance acquisition requirements against equity and seller capital.
TOTAL USES$1,545,000
EQUITY + SELLER NOTE$315,000
INDICATED SENIOR CAPITAL GAP$1,230,000
Illustrative calculations only. Not an appraisal, approval, lender quote, or recommendation. Verify financial statements, allowable adjustments, loan terms, and professional advice.
DEBT COVERAGE
Sensitivity test for earnings versus proposed annual debt service.
ILLUSTRATIVE DSCR1.64×
CASH AFTER DEBT SERVICE$115,000
COVERAGE AT 20% LOWER CASH FLOW1.31×
Illustrative calculations only. Not an appraisal, approval, lender quote, or recommendation. Verify financial statements, allowable adjustments, loan terms, and professional advice.
Financing Paths // Acquisition Financing
The Acquisition Workflow
01Know purchase economics
02Assess financing fit
03Build capital stack
04Stress debt service
05Underwrite downside
06Move to execution
DECISION INTELLIGENCE
Signals That Change the Decision
THE NEXT MOVE
MOVE THE DEAL FORWARD—OR KILL IT FOR A GOOD REASON.
Use the next layer only when the evidence earns it. Discovery should lead to analysis. Analysis should lead to financing, diligence, structure, or a disciplined no.