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Verify the Cash Flow

The seller says the business makes $410K. Does it? Rebuild the cash flow from the P&L and see how far the seller's claim stretches. Free, no login required.

Cash Flow Verification Calculator

Illustrative estimate only — work with your accountant on the real numbers.

Annual revenue

$

Annual business expenses (excluding owner compensation)

$

Owner compensation

$

Other add-backs you can verify (interest, depreciation, one-time costs)

$

Reported SDE (broker / seller's number)

$

Results

Reported cash flow (SDE)

The seller's or broker's claim

$0

Estimated normalized cash flow

Built from the P&L and verifiable add-backs

$0

Unverified add-backs

Claim is within your estimate

$0

Illustrative educational estimate only. Actual financing availability, valuation, terms, payments and acquisition outcomes depend on the specific buyer, lender, seller and transaction.

What to question in a cash flow claim

  • Add-backs. One-time expenses, personal trips, family on payroll — every dollar you can’t document with evidence comes back out of SDE.
  • Manager replacement. If the owner works full-time in the business, the salary to replace them reduces the real earnings a buyer keeps.
  • The multiple. Removing add-backs lowers SDE — which raises the effective multiple you’re paying at the same asking price.

This calculator produces an educational estimate — it is not an audit, a verification of the seller’s records, or a guarantee of actual cash flow.

You just verified what the cash flow really is.

Now see whether the business itself is worth buying.

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