Hello everyone,

I'm a self-funded searcher exploring my capacity to acquire a business. While I understand that underwriting largely depends on the specifics of the business in question, I’m trying to get a rough idea of what size business my capital can support.

Here’s a breakdown of my resources:

  • - $100,000 in cash designated for a down payment
  • - $100,000 in additional cash and investment accounts
  • - $150,000 in home equity

Some additional details about me:

  • - 30 years old with an 800 credit score
  • - Annual income of $160,000 (not including my spouse’s income)
  • - Professional background in financial services and middle management in Big 4 consulting

I'm planning to use the $100,000 for the down payment and am assuming a 10% seller note. What scale of business can I realistically afford?

I've received an “estimate” from a lender that caps me around 600k business price with 20% down and requires additional 10% in reserve.