Pre-LOI Deal Screening for SMB Buyers and Searchers
I built Acquisition Decision Engine because I kept seeing the same problem in SMB acquisitions:A deal can look interesting on the surface, but the buyer often does not have enough information yet to know whether it is actually financeable, durable, or worth pushing toward LOI.
ADE is meant to be a first-pass discipline system before the expensive part of diligence begins.
It is not a replacement for a lender, CPA, attorney, QoE provider, broker, or buyer judgment.
The purpose is simpler:Help buyers slow down, organize the deal, identify missing information, and pressure-test whether the numbers support the story.
ADE reviews a deal across areas like:
Owner dependence
Revenue durability
SDE / EBITDA quality
Asking price vs cash flow support
SBA financeability
Debt service coverage
Buyer fit
Operational risk
Hard risk flags
LOI readiness
Questions that should be answered before moving forward
One area I’ve been especially focused on is SBA reality.
For many smaller deals, the business is only worth what the cash flow can support.
So ADE includes an estimated SBA financing ceiling, DSCR view, estimated equity requirement, debt service estimate, and related warnings.
To run a useful deal through ADE, the best inputs are:
Asking price
Revenue
SDE or EBITDA
Seller discretionary expenses / add-backs
Owner role
Customer concentration
Revenue mix
Recurring vs project revenue
Any known financing terms
Any CIM, teaser, listing, or broker notes available
Any concerns the buyer already has
ADE can still run with limited information, but the output will be more useful when the buyer gives it enough context to identify what is missing.
Right now, I’m continuing to improve the system using real and realistic deal inputs from SMB buyers and searchers.
The goal is not to make buyers more excited about deals.
The goal is to help them avoid believing weak information too early.
You can try it here:redacted