Wondering if anyone can comment on their experience with purchasing businesses at <1.5 DSCR. I am looking at a recurring revenue, recession resistant business for 3.7x SDE. The business has consistent revenue and EBITDA for 2022 & 2023. DSCR is 1.3 at 2022 cash flow and 1.0 at 2021 cash flow. The business is in a niche with the ability to grow., but it's a small business with <$500K SDE

Lenders have given it the green light, but it gives me some pause on the DSCR being that low.

Has anyone on here bought and operated a business around those terms? Was it constant stress?