- Modeled cash flow covers the proposed acquisition debt.
- Real estate is reportedly included.
- The surrounding market has a sizable customer base.
Acquisition QuestComplete fictional Decision Report
Acquisition QuestPROGRESS SAVED · DECISION CHECKPOINTAQ DECISION REPORT · FICTIONAL SAMPLE
Harbor Shine
Car Wash
A plain-English first acquisition review for a self-service and in-bay automatic car wash with real estate included in Mount Pleasant, South Carolina.
DECISION CHECKPOINT
Is this worth more of your time?
Yes—but the current information supports investigation, not commitment.
CURRENT ANSWER
Request the records and inspect the equipment before discussing an offer.
The seller’s numbers suggest the business may carry the proposed debt and leave approximately $86,716 per year before personal taxes and unforeseen costs. That cushion shrinks quickly if sales soften or recurring repairs are understated.
WORTH THE NEXT2–3hours of investigationNot yet worth professional diligence fees
ASKING PRICE$1,200,000Seller reported
MODELED CASH NEEDED$230,000Calculated
CASH AFTER DEBT$86,716Calculated
DEBT COVERAGE1.47×Calculated
- The $300,000 SDE has not been reconciled to tax returns.
- Equipment described as “mixed ages” may require near-term capital.
- No property allocation, environmental record, or detailed maintenance history was provided.
- Request the SDE worksheet and three years of financials.
- Obtain the equipment list, ages, service records, and repair history.
- Confirm the property parcel and what portion of the price is assigned to real estate.
THE DEAL IN PLAIN ENGLISH
Where the money comes from—and where it goes
Think of the purchase as a stack: the bank, the seller, and you each cover part of the transaction.
Purchase-price down payment $120,000Closing costs $35,000Working capital $75,000Total modeled cash from you $230,000
Working capital is not part of the seller’s price.
It is money left inside the business after closing to cover payroll, utilities, chemicals, repairs, and slow weeks while you learn the operation.
THE QUESTION EVERY BUYER ASKS
What might this business actually pay you?
Reported SDE is the starting point—not the amount you can automatically move into your personal checking account.
SELLER-REPORTED SDE$300,000Claimed benefit for one working owner
−NEW OR MISSING COSTS$30,000Repair reserve and software/insurance changes
−ACQUISITION DEBT$183,284Bank and seller-note payments
=MODELED CASH REMAINING$86,716Before personal taxes and surprises
This could support owner compensation, but it is not guaranteed take-home pay.
The base result is close, leaving little room if the owner also wants the business to retain cash.
A slightly lower price, stronger earnings, or more seller financing could close the gap.
EARNINGS QUALITY
Can we trust the reported $300,000 of SDE?
Not yet. The number may be accurate, but the supporting worksheet and source records were not provided in this fictional listing.
Supported or calculated · 32%Seller-reported · 45%Missing · 23%
| Earnings item | Current treatment | Evidence status | Why it matters |
|---|---|---|---|
| Accounting profit | $165,000 | Seller reported | Should agree with financial statements and tax returns. |
| Owner compensation | +$95,000 | Seller reported | Valid only if it was already recorded as an expense. |
| Interest and depreciation | +$28,000 | Unverified | Potentially normal add-backs, but the amounts need records. |
| One-time repairs | +$12,000 | Questionable | Repairs may recur in an equipment-heavy business. |
| Claimed SDE | $300,000 | Reconcile next | Supports the price, debt coverage, and buyer income. |
REQUEST THIS NEXT
A written SDE reconciliation
Ask for the seller’s SDE worksheet tied to three years of tax returns and profit-and-loss statements.
“Please show the reported profit, each owner-pay or discretionary add-back, and where each amount appears in the financial records.”
PRICE SUPPORT
What price could the current information reasonably support?
This is a negotiation and screening range—not an appraisal or declaration of value.
$1.05MCautious$1.15MWorking range$1.20MAsking price$1.28MOptimistic
Reported SDE supports the modeled debt, and real estate is reportedly included.
The current 4.00× SDE multiple includes an unknown property allocation and unverified earnings.
Verified SDE, equipment condition, an appraisal, property records, and comparable transactions.
FINANCING & CASH
What must be true for this financing plan to work?
The bank and seller-note terms below are planning assumptions, not approvals or live quotes.
BANK LOAN$960,00010.5% · 10 years$12,954/month
SELLER NOTE$120,0006% · 5 years$2,320/month
COMBINED DEBT$1,080,00090% of asking price$15,274/month
BUYER CASH$230,000Down payment + costs + reserveBefore lender-required reserves
THE FINANCING DEPENDS ON
- The lender accepting the business and buyer as eligible and creditworthy.
- The seller agreeing to the note and any lender-required standby terms.
- The buyer documenting the required cash and any additional reserves.
- The business sustaining enough adjusted earnings to repay both obligations.
- The property, equipment, insurance, and environmental review satisfying the lender.
THE BAD-YEAR TEST
What happens when the year does not go according to plan?
Debt payments remain due even when sales soften or equipment needs attention.
Less roomMore room
Seller’s current claim
$86,7161.47× coverage
Sales fall 10%
$23,7161.13× coverage
Sales fall 20%
−$39,2840.79× coverage
Rate rises 2 points
$73,6041.39× coverage
$75,000 equipment event
$11,7161.06× coverage
A 10% sales decline does not simply reduce your pay by 10%.
The modeled loan payment stays fixed. In this illustration, a 10% decline reduces annual cash remaining from roughly $87,000 to $24,000.
FIVE-YEAR OUTLOOK
Debt falls slowly—then owner cash improves
This base illustration assumes 2% annual earnings growth, unchanged bank terms, and no major unplanned capital event.
Ending debtModeled owner cash
WHAT COULD YOU BE BUILDING?
MODELED FIVE-YEAR PRINCIPAL REDUCTION$477,000Potential ownership equity as acquisition debt falls
This illustration holds the combined business and property value steady at the $1.2 million purchase price. Only principal reduction creates the increase shown below.
At closing
$120KPotential equity$1.08MDebt remaining
Year 1
$199KPotential equity$1.00MDebt remaining
Year 2
$285KPotential equity$915KDebt remaining
Year 3
$379KPotential equity$821KDebt remaining
Year 4
$483KPotential equity$717KDebt remaining
Year 5
$597KPotential equity$603KDebt remaining
Potential ownership equity is not guaranteed personal net worth. Actual business and property values, taxes, depreciation, additional borrowing, capital spending, transaction costs, and operating performance can materially change the result. A real report should separate business, equipment, and real-estate values when reliable allocations are available.
This is not a promise or lender projection.
Taxes, equipment replacement, working-capital changes, owner withdrawals, sale value, and actual operating performance can materially change the result. The first full report should be regenerated when historical financials and lender terms are available.
CAR-WASH LENS
What matters specifically for this kind of business?
A car wash is an operating business, an equipment system, and often a property decision at the same time.
Reconcile point-of-sale records, bank deposits, membership activity, and utility usage.
Obtain model, serial number, installation date, service history, warranty, and expected replacement timing.
An expense is not nonrecurring merely because the seller prefers to add it back.
Water, sewer, electricity, reclaim systems, and chemical costs can reveal both operating quality and reported volume.
Traffic counts alone do not show whether drivers can enter safely or whether a competing wash is planned nearby.
Wastewater, chemical storage, underground systems, and historic property uses may require specialist review.
PROPERTY & LOCATION CONTEXT
The surrounding market looks supportive—but the parcel still needs work
Public area data describes the market around the fictional property. It does not prove that this particular site has adequate access, zoning, utilities, condition, or value.
FICTIONAL SITE · ZIP 29464Mount Pleasant, South Carolina
Full parcel address intentionally omitted in this fictional sample.
2025 TOWN POPULATION95,469Up 4.9% from the 2020 estimate base
MEDIAN HOUSEHOLD INCOME$124,7552020–2024, in 2024 dollars
HOUSEHOLDS39,8842020–2024 estimate
MEAN COMMUTE24.9 minWorkers age 16+
Outside source
U.S. Census Bureau QuickFacts, Mount Pleasant town, South Carolina; population estimate dated July 1, 2025 and 2020–2024 characteristic estimates.
View source ↗- A sizable and growing surrounding population
- Relatively high household income
- A meaningful owner-occupied housing base
- Deed and parcel identification
- Zoning and permitted use
- Ingress, egress, visibility, and traffic flow
- Flood, environmental, utility, and drainage review
- Independent property appraisal and condition work
SELLER CLAIMS WORTH CHECKING
Turn every attractive phrase into an evidence request
A listing is marketing. The table below converts the fictional listing’s claims into specific next steps.
| Seller’s claim | Why it matters | Evidence to request | Status |
|---|---|---|---|
| “$300,000 cash flow” | Supports price, loan, and buyer income | SDE worksheet, tax returns, P&Ls, bank activity | Unverified |
| “Mostly absentee” | May imply manager payroll already exists | Owner hours, manager duties, payroll records | Unverified |
| “Equipment in good condition” | Controls near-term repair and replacement cash | Asset list, age, invoices, warranties, service logs | Seller reported |
| “Real estate included” | Could represent substantial transaction value | Deed, parcel, appraisal, tax record, environmental review | Seller reported |
| “Turnkey opportunity” | May overlook licenses, staffing, training, and repairs | Transition plan, licenses, staffing roster, open work orders | Marketing term |
WHO TO SPEAK WITH NEXT
Bring the right question to the right person
You do not need every professional today. Start with free or low-cost information, then spend diligence money only when the deal earns it.
Show me the earnings and assets.
- How was SDE calculated?
- What exactly comes with the price?
- Why is the owner selling?
- What does the owner do each week?
Would this structure be financeable?
- What equity and reserves might be required?
- How would seller financing be treated?
- How is real estate handled?
- Which borrower documents should I prepare?
Do the records support the story?
- Reconstruct SDE
- Review tax returns and working capital
- Identify recurring repairs
- Separate business and property economics
What am I agreeing to?
- LOI protections
- Entity and asset-purchase structure
- Contracts, licenses, and liabilities
- Real estate, title, and environmental terms
What is likely to break or require replacement?
- Condition inspection
- Deferred maintenance
- Replacement timing
- Parts and service availability
Does the site support the operating story?
- Appraisal and condition
- Zoning and access
- Environmental review
- Water, sewer, drainage, and flood context
YOUR 30-DAY PUNCH LIST
Move from interesting listing to informed decision
The order matters: inexpensive evidence first, professional expense later.
Earn the right to keep investigating
Test financing and operations
Define your protections
Verify, inspect, and fund
WITH THE 14-DAY BUYER WORKSPACE
14 daysThis punch list becomes a living investigation.
Mark tasks complete, record what the seller says, add new numbers, and regenerate the report for $7 when the evidence materially changes.
7 discounted analyses
ASSUMPTIONS, SOURCES & LIMITS
Show the work—and show what is still unknown
A useful report makes its assumptions inspectable rather than hiding them behind a score.
Scenario entered
$1.2M asking price; $790K revenue; $300K SDE; $35K closing costs; $75K working capital; car wash; mixed-age equipment; real estate reportedly included; ZIP 29464.
Acquisition Quest formulas
Bank and seller-note amortization, total cash requirement, adjusted cash flow, annual debt service, DSCR, and scenario sensitivity.
Public context
U.S. Census Bureau QuickFacts for Mount Pleasant. Future live reports will date and link every retrieved source.
Interpretation
The deal deserves additional investigation if—and only if—the seller’s earnings and asset claims can be supported.
Not provided
Tax returns, financial statements, SDE worksheet, exact address, parcel data, equipment detail, appraisal, lender quote, buyer credit/liquidity, and professional findings.
Not replaced by Acquisition Quest
Lender underwriting, accounting and tax review, legal advice, appraisal, environmental work, insurance, licensing, and equipment inspection.
Educational screening—not approval or advice
Acquisition Quest does not appraise, approve, underwrite, audit, inspect, determine fair market value, verify seller claims, predict profit, or recommend a transaction. This fictional report demonstrates how buyer-provided information, seller-reported claims, reproducible calculations, dated public sources, missing information, and constrained automated interpretation can be organized into useful questions and next steps. Results may be incomplete or inaccurate and can change when inputs, evidence, market conditions, financing, or property facts change. Use qualified professionals before signing, paying, borrowing, or acting.
Disclosure version 2026-08-29-v1 · Complete Terms & DisclosuresUnderstand the deal. Know what is missing. Take the next step without pretending you know more than you do.
The free calculator gives you the first screen. The Decision Report and 14-day Buyer Workspace are designed to help you investigate what comes next.