Acquisition Funding Calculator. A clearer first-pass view.
Build an acquisition funding stack across buyer equity, senior debt, vendor finance, deferred consideration, working capital, and transaction costs, then test DSCR and debt to EBITDA.
Translate a headline purchase price into the complete funding requirement and show how each funding layer affects annual debt service.
Business acquisition funding calculator
Build an indicative acquisition funding stack and test debt service against adjusted EBITDA.
Change any assumption to update the result instantly.
Calculated from the assumptions entered on this page.
Funding requirement after equity, vendor finance and deferred consideration.
Adjusted EBITDA divided by annual senior and vendor debt service.
Purchase price, working capital and transaction costs.
Senior debt plus vendor finance.
Indicative principal-and-interest service across both debt layers.
Total funded debt divided by adjusted annual EBITDA.
Buyer equity divided by the total transaction requirement.
Scheduled interest across the entered senior and vendor terms.
- • DSCR uses EBITDA before tax, capital expenditure, working-capital movements and other lender adjustments.
- • The model does not assess business quality, purchaser experience, security, earn-out conditions or lender appetite.
Keep the source figures visible
Transaction requirement
Purchase price, working capital, and completion costs.
Maintainable earnings
Adjusted annual EBITDA used for the scenario.
Funding sources
Buyer equity, vendor finance, and deferred consideration or earn-out.
Debt terms
Rates and amortisation periods for senior and vendor debt.
Turn inputs into a reviewable signal
Senior debt required
The residual funding need after other sources.
Annual debt service
Combined scheduled service across senior and vendor debt.
DSCR
Adjusted EBITDA divided by annual debt service.
Debt to EBITDA
Total funded debt relative to adjusted annual EBITDA.
$2.00 million business acquisition
A buyer also needs $150,000 of working capital and $75,000 of transaction costs, funded with equity, vendor finance, an earn-out, and senior debt.
Senior debt required = $2,225,000 − $600,000 − $250,000 − $200,000 = $1,175,000. Combined annual debt service is approximately $314,560.
Residual funding need after the other sources.
EBITDA divided by annual senior and vendor debt service.
Senior and vendor debt divided by EBITDA.
Move from raw figures to a better review conversation
The tool organises an early scenario. Keep the evidence, assumptions, and professional review attached to the result.
Build the complete requirement
Add the purchase price, required working capital, and transaction costs.
Layer the funding sources
Enter equity, vendor support, deferred consideration, and debt terms.
Stress the earnings case
Reduce EBITDA or shorten debt terms to see how the coverage position changes.
Keep the result in context
Senior and vendor facilities are modelled as monthly principal-and-interest loans.
Deferred consideration is excluded from scheduled debt service in the displayed DSCR.
EBITDA is entered by the user and is not independently adjusted by the calculator.
Tax, capital expenditure, working-capital movement, purchaser drawings, security, and lender policy require separate review.
Useful for business brokers, accountants & buyers
Translate a headline purchase price into the complete funding requirement and show how each funding layer affects annual debt service.
About the Acquisition Funding Calculator
Use these answers to understand the tool's purpose before relying on its indicative output.
What is included in the acquisition funding requirement?
The calculator combines purchase price, transaction costs, and the working capital required at completion.
How is senior debt calculated?
Senior debt is the residual requirement after subtracting buyer equity, vendor finance, and deferred consideration from the total transaction requirement.
Does the calculator value the business?
No. It uses the purchase price and EBITDA entered and does not determine maintainable earnings, enterprise value, or an appropriate purchase multiple.
Use the calculator, then keep the assumptions attached to the result.
The result is an indicative workflow signal. Broker, adviser, valuer, accountant, and lender review still applies to the full scenario.