LEVERAGED BUYOUT & ACQUISITION FINANCING ADVISORY

Leveraged Buyout (LBO) Advisory & Financial Modeling

A business acquisition can appear attractive based on an EBITDA multiple yet become financially challenging once debt service, working capital, capital expenditures, and operating risks are considered.

Business Valuation Advisors (BVA) helps acquisition entrepreneurs, search funds, investors, and lenders evaluate whether a proposed purchase price and financing structure are supported by sustainable earnings and cash flow.

Our analysis connects independent business valuation, normalized EBITDA and SDE, acquisition financing, operating liquidity, and investor returns into a practical transaction model. We evaluate base-case assumptions, financing capacity, and downside scenarios to help identify potential risks before capital is committed.

  • Normalized EBITDA, SDE & Cash Available for Debt Service
  • Senior Debt, Seller Financing, Buyer Equity & Capital Structure
  • DSCR, Working Capital, Maintenance CapEx & Downside Risk

Discuss Your Leveraged Acquisition Explore Acquisition & SBA Valuation

A $5 Million Business Acquisition Can Require $5.45 Million in Capital

A Reconciled Sources-and-Uses Analysis of Acquisition Funding

A business acquisition's negotiated purchase price does not necessarily equal the total capital required to complete the transaction. Transaction expenses, additional operating working capital, minimum cash reserves, and the financing structure can materially affect funding requirements.

Consider a fictional services company generating $1.05 million in normalized EBITDA, with a negotiated operating-business purchase price of $5 million. For this illustration, the transaction is assumed to be cash-free and debt-free, with normal operating working capital included in the purchase consideration.

PURCHASE PRICE

$5.00M

4.76× normalized EBITDA

TOTAL FUNDING NEED

$5.45M

Price + fees + liquidity

CASH FINANCING

$4.20M

Senior debt + buyer cash

SELLER NONCASH

$1.25M

Seller note + rollover

BVA FINANCIAL EXHIBIT 01

 Reconciled Sources & Uses of Funds 

Uses of Funds

Operating-business purchase price $5,000,000
Transaction and financing expenses $100,000
Incremental noncash working capital $200,000
Minimum opening cash reserve $150,000
TOTAL USES $5,450,000

Sources of Funds

Senior acquisition debt $3,000,000
Buyer cash equity $1,200,000
Seller-financed promissory note $750,000
Seller rollover equity $500,000
TOTAL SOURCES $5,450,000

BVA FINANCIAL EXHIBIT 02

 Where the Purchase Consideration Goes 

The negotiated $5 million business price includes cash and noncash consideration to the selling owners. It does not mean the entire purchase price is transferred in cash at closing.

Cash paid to selling owners $3,750,000
Seller promissory note $750,000
Seller equity rollover $500,000
TOTAL SELLER CONSIDERATION $5,000,000

Seller Financing = Debt

The $750,000 note defers part of the purchase price. It creates a repayment obligation under the assumed note terms, including the Year 5 maturity analyzed in the next exhibit.

Seller Rollover = Equity

The $500,000 rollover represents a continuing economic interest in the post-closing business. Its ownership percentage and rights depend on the actual capitalization and equity terms.

CASH REQUIRED AT CLOSING

$4,200,000

$3,750,000 cash to sellers + $100,000 transaction expenses + $200,000 incremental working capital + $150,000 opening cash reserve.

Funded by: $3,000,000 senior acquisition loan + $1,200,000 buyer cash equity.

BVA ACQUISITION FINANCING INSIGHT

 A Balanced Funding Schedule Does Not Establish an Affordable Acquisition. 

The model reconciles the acquisition's closing requirements and financing sources, but it does not independently establish business value or debt-service capacity. The buyer must also evaluate recurring principal and interest payments, operating cash flow, capital expenditures, working-capital investment, and contractual loan maturities.

Illustrative Modeling Assumptions

The example assumes a cash-free, debt-free operating-business acquisition with normal noncash operating working capital included in the $5 million purchase price. The additional $200,000 represents separately funded incremental working capital above the assumed delivered amount; the $150,000 is a distinct minimum opening cash reserve.

The $100,000 fee, $200,000 working-capital allocation, and $150,000 cash reserve are hypothetical allocations of the original $450,000 funding requirement. No existing seller debt payoff, excess-cash adjustment, or other enterprise-to-equity bridge adjustment is assumed. Actual amounts depend on the purchase agreement, closing balance sheet, lender terms, and company-specific operating requirements.

Next financial question: Can normalized earnings support recurring payments on the $3 million senior loan and $750,000 seller note, including the seller-note balloon due in Year 5? The next case-study section evaluates debt-service coverage, downside cash flow, and maturity risk.

Entirely fictional financial example. Transaction terms, valuation multiples, financing amounts, fees, working-capital funding, and cash reserves are assumed for educational purposes and do not represent actual company records, an independently concluded valuation, lender approval, or a recommended capital structure.

Why Year-One Debt Coverage Doesn't Tell the Whole Story

Base-Case DSCR, Downside Cash Flow & the Year 5 Seller-Note Balloon

A leveraged acquisition may appear financially supportable when its first-year cash flow covers scheduled debt payments. However, Year 1 coverage does not eliminate refinancing risk, future principal maturities, or the financial consequences of weaker operating performance.

Continuing BVA's fictional $5 million business acquisition, the financing structure includes a $3 million senior loan and a $750,000 seller-financed note. The analysis below evaluates annual debt service, downside cash flow, and the seller-note balloon payment due in Year 5.

SENIOR ACQUISITION DEBT

$3.00M

10.50% annual interest, with monthly payments amortized over 10 years.

Monthly payment: $40,480

Annual debt service: $485,766

SELLER-FINANCED NOTE

$750K

8.00% annual interest-only payments, with principal due at the end of Year 5.

Annual interest: $60,000

Year 5 principal balloon: $750,000

BVA DEBT-SERVICE RECONCILIATION

$485,766 Senior Debt + $60,000 Seller Interest

= $545,766 Annual Debt Service

This recurring payment amount excludes the $750,000 seller-note principal balloon due in Year 5. The senior loan payment assumes a fixed 10.50% nominal annual rate, monthly compounding, and 120 monthly payments.

BVA FINANCIAL EXHIBIT 01

Base-Case vs. Downside Debt-Service Coverage

The following illustrative cash-flow assumptions reconcile the previously presented 1.33x base-case and 1.11x downside coverage ratios. The downside assumes a 15% decline in normalized EBITDA, with a smaller illustrative cash-tax provision and otherwise unchanged maintenance capital expenditures and working-capital investment.

SCENARIO A / BASE CASE

$1,050,000 EBITDA

Normalized EBITDA $1,050,000
Illustrative cash taxes ($150,000)
Maintenance CapEx ($120,000)
Working-capital investment ($54,000)
Cash Available for Debt Service $726,000

MODELED DEBT-SERVICE COVERAGE

1.33x

$726,000 / $545,766

SCENARIO B / 15% EBITDA DOWNSIDE

$892,500 EBITDA

Normalized EBITDA $892,500
Illustrative cash taxes ($112,500)
Maintenance CapEx ($120,000)
Working-capital investment ($54,000)
Cash Available for Debt Service $606,000

MODELED DEBT-SERVICE COVERAGE

1.11x

$606,000 / $545,766

DOWNSIDE CASH-FLOW INTERPRETATION

A 15% EBITDA Decline Reduces Coverage from 1.33x to 1.11x

Under these assumptions, the $157,500 EBITDA decline is partially offset by an illustrative $37,500 reduction in cash taxes. Cash available for debt service therefore decreases by $120,000, while scheduled loan payments remain unchanged.

The base case exceeds a hypothetical 1.25x screening level, while the downside case falls below it. This screening level is an illustration rather than an assertion of a particular lender's credit requirement.

BVA FINANCIAL EXHIBIT 02 / MATURITY RISK

 The $750,000 Seller-Note Balloon in Year 5 

The seller note requires interest-only payments during the first five years. Its $750,000 principal balance remains outstanding until maturity, creating a significant additional funding obligation even if the business has made all previously scheduled interest payments.

YEARS 1–4

$545,766

Annual senior-loan payments and seller-note interest, excluding principal balloon payments.

YEAR 5 / BALLOON MATURITY

$750,000

Additional seller-note principal due on top of ordinary scheduled debt payments.

SENIOR LOAN AFTER YEAR 5

~$1.88M

Senior principal still outstanding after 60 monthly payments, continuing under the assumed amortization schedule.

ILLUSTRATIVE YEAR 5 DEBT PAYMENT REQUIREMENT

$545,766 Recurring Service + $750,000 Balloon

= $1,295,766

This is the illustrative cash debt-payment requirement during the balloon year if the note is repaid on its contractual maturity without refinancing or restructuring. The remaining senior principal is not itself assumed to mature in Year 5.

Liquidity implication: If Year 5 cash available for debt service were unchanged from the $726,000 base-case amount, current-year cash flow alone would fall approximately $570,000 short of the combined contractual payment requirement. Prior accumulated cash, refinancing, new equity, restructuring, or other sources could change the actual funding outcome.

BVA LEVERAGED ACQUISITION RISK ASSESSMENT

 A Supportable Year-One DSCR Does Not Resolve Long-Term Repayment Risk 

A financially supportable acquisition must withstand recurring debt service, operating cash requirements, downside performance, and contractual maturities. BVA evaluates these obligations together rather than treating initial debt-service coverage as sufficient evidence that the entire financing structure is sustainable.

Operating Risk

Earnings sensitivity and cash conversion.

Financing Risk

Principal payments, interest and covenants.

Maturity Risk

Balloon funding and refinancing exposure.

Illustrative Modeling Assumptions & Limitations

This example is fictional. The cash-tax, maintenance CapEx, and working-capital amounts are illustrative modeling assumptions introduced to provide a transparent cash-flow reconciliation; they are not actual financial records. The assumed downside tax reduction is not a projection of tax liability for any specific business.

Debt-service coverage is calculated using the specified acquisition financing obligations and modeled cash flow. Actual lender DSCR definitions, financing eligibility, covenant requirements, operating performance, seller-note subordination, additional indebtedness, reserves, and maturity treatment may differ. Financing and investment decisions require transaction-specific analysis.

Related BVA analysis: Our  Business Acquisition Valuation and Financial Analysis  service addresses business value, normalized earnings, acquisition funding, and debt-service capacity.

Need Confidence in Earnings and Value, Too?

Integrated Quality of Earnings, Independent Valuation & Acquisition Financing Analysis

A leveraged buyout model can reveal whether an acquisition's financing structure is supportable. But debt-service analysis alone does not establish whether the seller's reported earnings are reliable or whether the proposed purchase price is independently supported.

For buyers who need these questions evaluated together, Business Valuation Advisors offers an integrated Acquisition Decision Package combining three complementary financial analyses.

01 / EARNINGS QUALITY

Are the Earnings Reliable?

Quality of Earnings analysis evaluates normalized EBITDA or SDE, seller add-backs, owner compensation, cash evidence, and material financial risks.

02 / BUSINESS VALUE

Is the Purchase Price Supported?

Independent business valuation evaluates normalized earnings, relevant valuation approaches, business risk, and the relationship between price and value.

03 / ACQUISITION FINANCING

Can the Financing Work?

Acquisition modeling evaluates buyer equity, debt-service coverage, operating liquidity, capital expenditures, seller financing, and downside scenarios.

BVA ACQUISITION DECISION PACKAGE

 Know the Earnings. Understand the Value. Test the Financing. 

BVA's buyer-directed engagement combines a defined-scope Quality of Earnings report, separately documented independent valuation, and acquisition financing analysis. Explore our engagement options, starting fees, and representative acquisition case study.

Services and deliverables depend on the signed engagement scope. Quality of Earnings is financial due diligence rather than an audit or assurance engagement. Buyer-commissioned reports may not satisfy separate SBA or other lender-directed requirements, and financing analysis does not constitute loan approval.

From Financial Modeling to Better Acquisition Decisions

Four Integrated Analyses Supporting Acquisition Financing, Equity Returns & Risk Assessment

A leveraged acquisition model should do more than reconcile the sources and uses of funds. Buyers and investors need to understand how the acquisition price, financing structure, sustainable cash flow, and operating risks affect the capital required and potential investment returns.

Business Valuation Advisors integrates four analytical workstreams to help evaluate whether a proposed acquisition is financially supportable and identify the assumptions that could materially change the investment outcome.

BVA ACQUISITION ADVISORY FRAMEWORK

Purchase Price + Capital Structure + Sustainable Cash Flow + Downside Analysis

A transaction may have an attractive EBITDA multiple yet produce weak investor returns or insufficient cash flow after debt service and reinvestment. The financial model should identify these trade-offs before the buyer commits capital.

01

TRANSACTION FUNDING

Sources, Uses & Capital Structure

Reconcile acquisition consideration, senior debt, seller financing, buyer equity, rollover equity, transaction expenses, and initial operating liquidity.

ANALYTICAL OUTPUT

Reconciled sources and uses, required buyer funding, cash versus noncash consideration, and capital-stack assumptions.

02

CASH FLOW & LEVERAGE

Debt Capacity & DSCR Analysis

Convert normalized EBITDA or SDE into modeled cash flow after appropriate cash taxes, maintenance CapEx, working-capital investment, and other operating requirements. Evaluate senior and seller debt obligations.

ANALYTICAL OUTPUT

Cash-flow reconciliation, scheduled debt payments, DSCR sensitivities, repayment requirements, and financing constraints.

03

INVESTMENT PERFORMANCE

Equity Returns & Downside Scenarios

Evaluate buyer equity contributions, potential cash distributions, debt paydown, exit assumptions, and investment returns. Test weaker operating performance, changes in financing costs, and seller-note maturity obligations.

ANALYTICAL OUTPUT

Scenario-based equity returns, leverage sensitivities, liquidity pressure points, and downside exposure.

04

TRANSACTION DECISION SUPPORT

Acquisition Findings & Risk Assessment

Reconcile valuation evidence, funding requirements, earnings quality, financing assumptions, and financial diligence findings. Identify transaction constraints and matters requiring resolution before closing.

ANALYTICAL OUTPUT

Material assumptions, key financial findings, unresolved risks, potential structuring considerations, and decision-support analysis.

BVA ACQUISITION MODELING DELIVERABLES

 From an Integrated Financial Model to Decision-Useful Findings 

Depending on engagement scope, BVA can provide an integrated acquisition model, supporting schedules, scenario sensitivities, and a concise findings memorandum to support financial due diligence and investment discussions.

Financial Model

Sources and uses, financing, cash flow, and returns.

Sensitivity Analysis

Debt coverage, operating downside, and maturity exposure.

Findings Memorandum

Assumptions, financial constraints, and transaction risks.

Actual reporting deliverables depend on the agreed assignment scope. BVA provides independent valuation and financial analysis; acquisition decisions and credit approvals remain the responsibilities of the buyer, investor, and lender.

BVA INDEPENDENT ANALYSIS

A Transaction Should Be Evaluated for Value, Funding, Repayment Capacity, and Investor Economics

A financially supportable acquisition requires more than a purchase-price multiple or acceptable initial DSCR. BVA evaluates the assumptions that drive economic value, operating cash flow, capital requirements, and risk so buyers can identify weaknesses before committing capital.

The depth of financial modeling, due diligence, valuation procedures, and investor-return analysis is established in the engagement scope and reflects the availability and reliability of transaction information.

WHAT WE ANALYZE
Leveraged Buyout Analysis Beyond the Purchase Price
Normalized Earnings & Cash Flow

Analyze reported EBITDA, SDE, owner compensation, add-backs, nonrecurring items, and other adjustments to estimate sustainable earnings and cash flow available to support the acquisition.

Debt Capacity & DSCR

Evaluate acquisition debt, principal and interest requirements, debt-service coverage, seller financing, and other obligations to determine whether the proposed capital structure is supportable.

Purchase Price & Capital Structure

Connect enterprise value and purchase price with buyer equity, senior debt, seller notes, rollover equity, contingent payments, and other transaction terms affecting the economics of the deal.

Working Capital & Liquidity

Estimate normalized operating working capital, closing requirements, post-closing liquidity, and additional cash needs that can materially affect the buyer’s true capital requirement.

Capital Expenditures & Reinvestment

Assess historical capital spending, depreciation, equipment condition, replacement needs, and ongoing reinvestment required to maintain sustainable operating cash flow.

Investment Returns & Downside Risk

Analyze leverage, equity returns, cash-flow sensitivity, repayment risk, and downside scenarios to understand how changes in earnings or financing assumptions affect the investment.

Discuss Your LBO Analysis

Who Helps With a Leveraged Buyout?

LBO ADVISORY & TRANSACTION SUPPORT

A leveraged buyout often involves several advisors, including an acquisition lender, attorney, CPA or tax advisor, and financial or valuation professional. The right team depends on the size and complexity of the transaction, financing structure, and the buyer’s experience. Business Valuation Advisors focuses on the financial analysis behind the transaction. BVA can help buyers, investors, and lenders evaluate normalized earnings, purchase price, debt capacity, DSCR, working capital, capital expenditures, financing structure, investment returns, and downside risk. Our role is complementary to the buyer’s legal, tax, lending, and transaction advisors. We provide independent valuation and financial analysis designed to help determine whether the proposed leveraged acquisition is financially supportable and where the principal risks may lie.
Discuss Your Leveraged Buyout

Leveraged Buyout (LBO) Advisory FAQs

Acquisition Financing, Debt Capacity, DSCR & Buyer Returns

Leveraged acquisitions require more than a purchase-price multiple or preliminary financing estimate. These questions explain how Business Valuation Advisors evaluates acquisition funding, sustainable cash flow, debt-service obligations, financial risk, and potential buyer returns.

CATEGORY 01 / ACQUISITION ECONOMICS

Purchase Price, Capital Structure & Business Value

 1. What is leveraged buyout advisory, and what does BVA analyze? 

Leveraged buyout advisory evaluates an acquisition financed partly through borrowed funds. BVA analyzes the proposed purchase price, normalized EBITDA or SDE, acquisition sources and uses, senior debt, seller financing, buyer equity, debt-service coverage, working capital, capital expenditures, and investment returns. The objective is to assess whether the proposed transaction structure is financially supportable under documented assumptions.

 2. Why can the total acquisition funding requirement exceed the purchase price? 

The negotiated business price may exclude transaction expenses, financing costs, additional working capital, and minimum operating cash reserves. Our fictional $5 million acquisition illustrates a total funding requirement of $5.45 million after including $450,000 of assumed additional costs and liquidity needs. BVA reconciles these uses against buyer equity, senior debt, seller notes, and any rollover consideration, avoiding double-counting amounts already included in the purchase price.

 3. How does BVA determine whether the acquisition purchase price is supported? 

BVA evaluates normalized earnings, projected cash flow, business risk, relevant market evidence, and the relationship between enterprise value and equity consideration. When a separate independent valuation is commissioned, appropriate valuation approaches are applied to develop a supported conclusion. A negotiated price may appear attractive relative to EBITDA yet still result in excessive leverage or inadequate buyer returns.

 Explore BVA's independent acquisition valuation services. 

CATEGORY 02 / DEBT CAPACITY & INVESTMENT RISK

Debt Service, Cash Flow & Downside Scenarios

 4. How much acquisition debt can a business reasonably support? 

Debt capacity depends on sustainable operating cash flow, loan interest rates, amortization terms, scheduled principal payments, taxes, capital expenditures, and working-capital requirements. BVA evaluates these factors under base-case and downside assumptions rather than relying exclusively on a debt-to-EBITDA multiple. Actual debt availability and permitted leverage are determined by the lender and applicable financing terms.

 5. What is DSCR, and why doesn't strong Year-One coverage eliminate financing risk? 

Debt-Service Coverage Ratio (DSCR) compares cash flow available for debt service with scheduled debt obligations under a defined calculation. A ratio of 1.30× indicates $1.30 of modeled available cash flow for every $1.00 of included debt service.

However, favorable Year-One DSCR does not eliminate future earnings declines, refinancing exposure, variable interest rates, or balloon maturities. BVA evaluates multi-period coverage, lender-specific definitions, and downside conditions where relevant to the engagement.

 6. How do working capital and capital expenditures affect acquisition cash flow? 

EBITDA does not equal cash available to repay debt. Buyers must consider income taxes, maintenance and growth capital expenditures, inventory and receivable funding, seasonal liquidity, and other operating requirements. BVA evaluates the cash needed to sustain business operations before determining how much cash flow may be available for financing obligations and investor distributions.

 7. How do seller financing, equity rollover, and balloon payments affect an LBO? 

Seller financing defers part of the purchase consideration but creates a debt repayment obligation. Seller equity rollover represents continuing ownership rather than a loan. These structures can reduce the buyer's immediate cash requirement while changing future debt obligations, ownership economics, and investment returns.

BVA's fictional LBO case includes a $750,000 seller note with principal due in Year 5. The analysis demonstrates why a transaction that covers scheduled annual interest and principal payments may still face a material balloon-payment or refinancing requirement.

 8. How does BVA evaluate investor returns and downside scenarios? 

BVA can model equity contributions, operating cash distributions, debt repayment, terminal equity value, Internal Rate of Return (IRR), and equity multiples. Sensitivity analysis may evaluate lower EBITDA, reduced cash conversion, higher financing costs, changes in exit valuation, and maturity obligations. The objective is to show how changes in assumptions affect buyer cash flow and potential returns—not to guarantee a particular investment outcome.

CATEGORY 03 / BVA ENGAGEMENT SERVICES

Independent Analysis & Getting Started

 9. Can BVA combine LBO analysis with Quality of Earnings and an independent valuation? 

Yes. BVA offers integrated acquisition financial analysis combining Quality of Earnings, independent business valuation, and acquisition financing modeling. These services address separate questions: whether reported earnings are reliable, whether the purchase price is supported, and whether the proposed financing is sustainable.

Our  Acquisition Decision Package  starts at $6,450 for a defined-scope engagement. More complex transactions and extended procedures are separately scoped.

 10. What information does BVA need, and how do I begin an LBO engagement? 

An initial review typically begins with the proposed purchase price, available financial statements, normalized EBITDA or SDE, financing assumptions, and anticipated transaction structure. A detailed engagement may also require tax returns, bank and credit-card statements, general-ledger detail, debt schedules, working-capital records, capital-expenditure history, and transaction documents.

BVA establishes the analytical scope, deliverables, fee, and anticipated timeline based on the transaction.  Schedule a confidential acquisition consultation. 

The analyses described above are subject to the signed engagement scope and available financial information. LBO modeling is scenario-based financial analysis, not a commitment to provide financing. Independent valuation is separately scoped where applicable, and Quality of Earnings is financial due diligence rather than an audit or assurance engagement. Illustrative acquisition figures do not represent actual transactions or lender-approved financing.

Professional Credentials Across the BVA Team

CVA®-LED ACQUISITION VALUATION & FINANCIAL MODELING

Independent LBO Analysis Backed by Valuation & Transaction Experience

Business Valuation Advisors, Inc. is led by Joshua Himan, CVA®, BCA®, FMVA®, a credentialed business valuation and transaction advisory professional with more than 15 years of experience analyzing privately held businesses, acquisitions, and financial performance.

Joshua holds a Master of Science in Applied Economics from Johns Hopkins University and a Master of Science in Finance from The George Washington University. His background combines independent valuation methodology, advanced financial modeling, and practical experience evaluating acquisition opportunities and transaction economics.

From Purchase Price to Cash Flow & Investor Returns

A leveraged acquisition can appear attractive based on an EBITDA multiple but become financially challenging once acquisition debt, seller financing, working capital, capital expenditures, and operating risks are considered.

BVA evaluates normalized earnings, acquisition sources and uses, cash available for debt service, financing structure, buyer equity requirements, and projected investment returns. We also test downside scenarios, seller-note maturities, and refinancing exposure to identify weaknesses that may not be apparent from initial debt-service coverage.

Independent Analysis. Documented Assumptions. Better Acquisition Decisions.

BVA's role is not to justify a negotiated purchase price or promote a proposed transaction. Our objective is to develop supportable business value conclusions, transparent financial models, and decision-useful findings that help buyers, search funds, investors, and lenders assess acquisition economics.

We evaluate whether the assumptions underlying the transaction are financially reasonable, identify material risks, and explain how changes in earnings, leverage, or operating cash requirements may affect the investment.

The goal is to understand not only what a business may be worth, but whether the proposed acquisition structure is financially sustainable.

Joshua Himan's Credentials & Experience Client Reviews & Selected Engagements

Evaluate Your Leveraged Buyout Before You Commit

Independent valuation and financial analysis can help you understand purchase price, debt capacity, cash-flow requirements, and downside risk before closing.

Before committing capital or finalizing financing terms, BVA can evaluate whether the proposed purchase price and capital structure are supported by sustainable cash flow. Our analysis can incorporate debt service, working capital, capital expenditures, seller financing, buyer equity, and downside scenarios to help you understand how the transaction performs under realistic assumptions.
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Explore All Private Business Valuation Services
 

Explore BVA's independent business valuation, transaction advisory, Quality of Earnings, acquisition financing, ownership valuation, litigation, and specialized financial analysis services.

Buy-Side Due Diligence & Acquisition Decision Package
 

Integrated Quality of Earnings, independent business valuation, and acquisition financing analysis. Explore buyer-focused service packages, starting prices, and representative acquisition financial exhibits.

Business Acquisition & SBA Valuation
 

Independent CVA-led business valuation for acquisitions and SBA financing, including normalized earnings, market and income approaches, enterprise-to-equity value reconciliation, and purchase-price support.

Quality of Earnings & Financial Due Diligence
 

Evaluate sustainable EBITDA and SDE, seller add-backs, owner compensation, Proof of Cash, revenue quality, working capital, capital expenditures, and transaction risks.

SBA 7(a) Valuation & Quality of Earnings
 

Lender-directed valuation and financial due diligence for qualifying SBA acquisitions, including earnings normalization, required Cash Proof procedures, working capital, and lender-focused transaction analysis.

Representative Acquisition Decision Support Summary
 

Review a fictional SBA lender-focused example connecting independent business value, normalized earnings, purchase price, working capital, operating liquidity, and financial risks relevant to acquisition underwriting.

SDE vs. EBITDA Business Valuation Guide
 

Learn how Seller's Discretionary Earnings, EBITDA, owner compensation, replacement-management costs, and seller add-backs affect normalized earnings, business value, and acquisition financing assumptions.

Joshua Himan's Credentials & Experience
 

Review Joshua Himan's valuation credentials, graduate education, professional experience, and background in private-company acquisitions, business valuation, financial modeling, and due diligence.

Client Reviews & Selected Engagements
 

Read client feedback and explore representative business valuation, Quality of Earnings, acquisition due diligence, and transaction advisory engagements completed by BVA.