This is a complete DealCard — the same output DealQuest produces for any business listing you paste. It includes a deal signal score, financial health breakdown, risk flags, evidence map, and diligence quests. Everything a serious buyer needs before making an offer.
SAMPLE DEAL · FICTIONAL BUT REALISTIC · BASED ON ACTUAL ACQUISITION LISTINGS
Alpine Plumbing Services is a 12-year-old residential and light commercial plumbing company based in Fort Collins, Colorado. The business generates approximately $180,000 in seller's discretionary earnings (SDE) on roughly $640,000 in annual revenue, yielding a net margin around 28%. The asking price of $1.2 million represents a 6.7× SDE multiple — above the 4–5× range typical for owner-operated trades, but defensible given the established local brand, repeat customer base, and a licensed crew of eight technicians.
The primary acquisition risk is owner concentration: the seller personally manages all key supplier relationships and holds the master plumber license under which the business operates. A buyer without an existing license would need to hire a licensed master plumber within 90 days of close or risk losing the state operating permit. Secondary concerns include a fleet of aging service vans (average 7 years old) and seasonal revenue variance of approximately 35% between summer peak and winter trough.
VALUATION NOTE
At 6.7× SDE this deal is priced at a premium to the 4–5× trades-business norm. The seller is likely pricing in the customer base, brand, and employee roster. A buyer could reasonably negotiate to $950K–$1.05M (5.3–5.8×) by pointing to the fleet liability and license risk. Debt service on an SBA 7(a) loan at current rates would consume approximately $98,000/year, leaving roughly $82,000 in pre-tax cash flow for the buyer — a 6.8% cash-on-cash yield on a $1.2M deal.
The evidence map shows which claims in this analysis are backed by verifiable sources versus inferred from the listing text. Green items are confirmed; yellow are partially verified; blue indicate items requiring additional documentation from the seller.
Quests are targeted diligence modules that deepen the analysis. Each quest adds completion points and surfaces specific risks or confirmations that affect valuation and deal structure.
Maps which revenue streams, relationships, and operational processes are contingent on the current owner. Quantifies transition risk and suggests contractual mitigations (training period, earn-out, non-compete scope).
Identifies all licenses, permits, and certifications held under the seller's name. Outlines the steps and timeline required to transfer or replace each one before close or within a safe harbor period.
Models the replacement cost and timing for all major equipment assets. Adjusts the effective purchase price to reflect near-term capex obligations not included in the asking price.
Requests full customer revenue breakdown. Flags if any single customer exceeds 15% of revenue, or if the top 5 customers account for more than 40% — both common deal-killers in services acquisitions.
Models the acquisition using an SBA 7(a) loan structure. Calculates debt service coverage ratio (DSCR) at current interest rates, buyer equity contribution, and post-close cash flow headroom.
Generates a one-page investment committee memo suitable for presenting to a search fund sponsor, family office, or acquisition partner — including thesis, risks, and recommended deal terms.
This deal scores "Strong" buyer fit for an operator-buyer or search fund entrepreneur with general management experience. It does not require deep technical plumbing knowledge — the licensed crew handles all service delivery. The buyer's role is operational: scheduling, customer relationships, hiring, and financial management.
The deal is less suitable for a passive investor or absentee owner. The 35% seasonal variance requires active cash management, and retaining the key technicians post-transition will depend heavily on the buyer's ability to build trust quickly. Financial buyers who expect minimal involvement within the first 12 months should apply a risk discount to the SDE multiple.
This is a sample analysis for demonstration purposes only. Alpine Plumbing Services is a fictional business. DealQuest provides educational and analytical tools — it does not provide investment, legal, tax, or financial advice. Always conduct independent due diligence and consult qualified professionals before any acquisition.
Copy the business description from BizBuySell, Quiet Light, or any broker. Paste it into DealQuest.
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