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Five-year model: what the deal leaves you after the loan is paid

Run the same five-year projection the Verity app runs — financing, growth, exit — on the SDE the listing states and on the SDE the documents support, side by side. Then see how much of the five-year cash rests on the seller's word.

Pre-fill an example
Clear all

Enter revenue, the two SDEs and the price to see what five years look like on each number.

1 · Start from the listing
Supported = on a tax return or P&L. Claimed = the listing's number only. Missing = not shown to you yet.
The seller's number, as written.
What the documents back. Don't have it? Work it back in the SDE calculator.
If yes, its value is added to the purchase price and financed on the same split.
2 · Structure the deal
20%
60%
20% — the remainder
3 · Growth assumptions — these are yours, not the listing's
5%
12%
18%
+5 pts
Year 1 margin starts where each SDE puts it: stated —, supported —. The app's own default is 30% → 35%.
5.5×
Years 4 and 5 grow at 10% and 8% in this model. That is fixed in the app too, so the two agree.
4 · What five years leave you — on the stated number, and on the supported number
On the stated SDE
Enter revenue, the stated SDE and the price
On the supported SDE
Enter the supported SDE

On record

  • Nothing on record yet.

Assumed — by you

  • Financing 20% down · 60% SBA at 7.5% over 10y · 20% seller carry at 6% over 5y
  • Growth 5% / 12% / 18%, then 10% / 8%
  • Margin change +5 pts by Year 3 · exit at 5.5× Year-4 profit

What this model does, and does not, do

  • Year 0 profit is the SDE you entered. From Year 1 on, profit is revenue × the margin — it does not subtract a salary for you as the new owner.
  • Exit value is Year-4 profit × your exit multiple. It is the value of the whole business. It does not subtract what you still owe on the SBA loan and seller note at that point — so "cash-on-cash" is gross, before paying the loans off.
  • Debt service is a flat annual payment for each loan's term. Break-even is the first year cumulative cash turns positive.
  • The math is the Verity app's What-If Lab, unchanged. Same inputs, same numbers.

What to ask the seller for

  • Mark a number as claimed or missing to build the list.

Your five-year model, in one paragraph

Enter the numbers to write it.

Illustrative math on the numbers you enter. Educational, not legal, tax, or financial advice. Nothing you type here is stored.

VERITY BRAIN · ANALYSIS
Run the real thing on the documents

Upload the listing, the returns, and the P&L — every figure traced to its source page, every contradiction surfaced as a question. First analysis of every deal is free.

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