Composite sample output
What a $199 Deal Desk Sprint delivery looks like.
This is an anonymized composite example for format and quality bar only. It is not a real client memo and not investment, legal, tax, accounting, lending, or Quality of Earnings advice.
Submitted target
Niche B2B field-services company
Broker summary says $2.4M revenue, $410K seller discretionary earnings, $1.45M asking price, recurring commercial accounts, owner handles estimating and three major customer relationships.
Triage view
Ask more
Not LOI-ready until add-backs, customer concentration, and owner replacement burden are clarified.
Memo
A concise Acquisition Memo with confidence labels and an Evidence Ledger appendix.
Risk brief
The 5-7 risks most likely to change price, financing, or whether to continue.
Broker email
A copy-paste question set that asks for the minimum facts needed to decide next steps.
Executive read
The submitted materials show a potentially financeable local services business, but the current broker package is not strong enough to support an LOI at the stated price. The main issue is not revenue size; it is whether reported SDE survives owner replacement, concentration, and add-back scrutiny.
At face value, $1.45M / $410K SDE implies 3.5x SDE. If a replacement operator costs $120K-$160K and only $40K of add-backs are verified, effective SDE could fall toward $250K-$290K, moving the ask to roughly 5.0x-5.8x. That may still be viable, but only if revenue durability and customer concentration are clean.
SDE/Add-Back Pressure Test
| Pressure item | Source status | Evidence | Broker question |
|---|---|---|---|
| Reported SDE | not verified | $410K SDE is broker-stated; add-back support is not included. [E2] | Send the add-back schedule with source P&L lines and tax-return tie-out. |
| Owner replacement | hard to support without verification | Owner handles estimating and three major customer relationships. [E5] | Map the owner's weekly duties and who absorbs each task after closing. |
| Customer quality | not disclosed | Recurring commercial accounts are asserted, but concentration is missing. [E4] [U1] | Send top customer revenue, contract term, renewal status, and termination rights. |
| Workforce / capacity | not disclosed | No roster, wage band, license, or retention detail was included. [U3] | Send employee roster, tenure, wage bands, licenses, and retention plan. |
Decision gates
Worth pursuing if...
- Top customer concentration is below roughly 20%-25% or contracts are durable.
- The $410K SDE has a clean add-back schedule and survives owner replacement.
- A manager, estimator, or seller transition plan covers the owner's current role.
- Debt service coverage still clears after a conservative operator-salary adjustment.
Pass or reprice if...
- Most SDE comes from unsupported add-backs or unpaid owner labor.
- One or two customers drive the majority of recurring revenue.
- The seller cannot transfer estimating, relationships, or operating know-how.
- The ask stays above 5x adjusted SDE after conservative replacements.
Ranked red flags
Owner replacement may consume much of the SDE. [E5, M1, U3]
Evidence basis: Broker notes say owner estimates jobs and manages three major accounts.
Next diligence action: Request owner weekly role breakdown and whether a GM/estimator is already on payroll.
Customer concentration is not quantified. [U1]
Evidence basis: Summary says recurring commercial accounts but does not list top customer revenue.
Next diligence action: Request top 10 customers by revenue for the last 24 months, anonymized if needed.
Add-backs are not supported. [E2, U2]
Evidence basis: $410K SDE is provided, but add-back schedule is not included.
Next diligence action: Request the full add-back schedule with source P&L line items.
DSCR may be tight if adjusted SDE is below broker SDE. [D1, D2]
Evidence basis: At SBA-style leverage, debt service could crowd out owner salary and reinvestment.
Next diligence action: Request seller financing willingness and working-capital expectations at close.
Recurring revenue quality is asserted, not proven. [E4, U1]
Evidence basis: The summary says recurring commercial accounts but does not disclose renewal terms, churn, or contract assignability.
Next diligence action: Request a customer cohort view: revenue by customer for 24 months, contract term, renewal status, and termination rights.
Working capital and equipment needs could change cash-at-close. [U4]
Evidence basis: The package does not state normalized working capital, receivables aging, fleet condition, or near-term capex.
Next diligence action: Request AR aging, included working-capital target, equipment schedule, and capex needed in the next 12 months.
Arithmetic checks
| Scenario | SDE view | Ask multiple | Evidence IDs | Sprint read |
|---|---|---|---|---|
| Broker SDE accepted | $410K | 3.5x | E2, E3 | Potentially attractive, but unsupported. |
| Moderate owner replacement | $290K | 5.0x | D1, M1 | Needs stronger recurring revenue proof. |
| Heavy owner dependency | $250K | 5.8x | D1, U3 | Likely overpriced for a first-time buyer. |
Evidence Ledger
| ID | Category | Claim | Basis | Action |
|---|---|---|---|---|
| E1 | Provided | $2.4M revenue | Broker summary | Verify against P&L and tax returns |
| E2 | Provided | $410K broker SDE | Broker summary | Verify against add-back schedule |
| E3 | Provided | $1.45M asking price | Listing | Confirm included working capital and assets |
| E4 | Provided | Recurring commercial accounts asserted | Broker summary | Request renewal/churn evidence |
| E5 | Provided | Owner estimates jobs and manages three major accounts | Broker notes | Request owner role map |
| D1 | Derived | 5.0x-5.8x adjusted SDE stress case | $1.45M / $290K-$250K | Test DSCR under conservative SDE |
| D2 | Derived | 3.5x broker SDE | $1.45M / $410K | Recompute after owner-replacement adjustment |
| M1 | Model-prior | Owner-led estimating can be hard to replace | Field-service pattern, medium confidence | Ask for role map and replacement plan |
| U1 | Unknown | Top customer concentration | Not disclosed | Request anonymized top customer revenue |
| U2 | Unknown | Add-back support | Not disclosed | Request add-back schedule with source lines |
| U3 | Unknown | Manager/estimator bench | Not disclosed | Request org chart and comp detail |
| U4 | Unknown | Working capital and equipment condition | Not disclosed | Request AR aging, working-capital target, and capex schedule |
Copy-paste broker email draft
Subject: Follow-up questions on [Company Name]
Hi [Broker Name],
Thanks for sending the summary. I am interested, but before I can decide whether to schedule a deeper call or submit an IOI, I need to understand a few items that affect financing and transition risk:
- Can you send the add-back schedule behind the $410K SDE? [E2] [U2]
- Can you share anonymized revenue by top 10 customers for the last 24 months? [U1]
- What percentage of estimating, sales, and account management is handled personally by the owner today? [E5] [U3]
- Is there a manager or estimator who could run day-to-day operations post-close? If yes, what is their current comp? [M1] [U3]
- Is the seller open to seller financing or transition-based structure if the diligence supports the deal? [D1]
If those items look reasonable, I would be glad to set up the next call this week.
Have one live deal?
Only buy when you have one live target and need the next broker email, IOI, LOI, lender, or investor step to get sharper. This is not a generic report.