Acquisition Excel Model
Originally published: 18/05/2019 08:33
Last version published: 30/06/2020 16:31
Publication number: ELQ-62587-3
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Acquisition Excel Model

A model to help plan and determine outcomes of acquiring different businesses

Description
This model is currently being used by my fund to evaluate acquisition opportunities as they are discovered. Whether you are looking a purchasing a small side project or a full time business you will want to understand the likely outcomes as well as the cash needed to make the purchase and run the business.

Buying a business is a costly endeavor in terms of time and money. knowing what to expect from it over the years is a vital part of the decision making process that you don't want overlook.

This tool includes:
1) A backlog of available opportunities
2) Monthly Loan payment calculations
3) Monthly Cash needs calculations
4) Expected dividends and income on a % ownership basis
5) 10 year time horizon
6) Easy comparison between multiple opportunities
7) Easy to use sensitivity Analysis on key variables (interest rates, down payments, etc.)
8) Built in Links to a knowledge base of Finance/Accounting concepts to help you develop your skills
9) Rate of Return calculations and explanations to help you make the best decision possible
10) Variable acquisition and sale dates to allow for any scenario

The model has been built to be extremely simple to use while offering maximal flexibility and analysis.

This Best Practice includes
1 Excel Workbook

Acquire business license for $10.00

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Further information

To help determine the best business acquisition and loan terms

If you are looking at a business or multiple businesses to acquire and trying to understand potential outcomes and returns

Reviews

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  • David Hamilton380(last updated: 04/06/2021 06:17)
  • Brandon Bruce, SSBBP, EMBA(last updated: 22/12/2020 13:19)
  • Mohd. Faizal Mohd. Zaki(last updated: 22/07/2020 13:04)
  • Díana Pena(last updated: 10/07/2020 14:42)
  • Jared Coleman(last updated: 04/03/2020 12:19)
  • Cody Hebert(last updated: 15/01/2020 21:25)
    Clearly see financial projections before the purchase.
    Instead of finding yourself 1-3 years into the business and still not financially stable, use this model to see if the business is worth the cost upfront!
  • Ayoub HS(last updated: 07/01/2020 17:36)

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Discussion feed for Acquisition Excel Model

The user community and author are here to help. Go ahead!

  • Mohd. Faizal Mohd. Zaki
    * comment deleted *
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  • burrosp
    There are "exit" parameters in the acquisition calculator but I don't see the exit factored into the projections.
    arrow_drop_uparrow_drop_downReply reply
    • Evan Diaz de Arce
      Hi, sorry for any confusion.

      I don't quite follow what you mean. What parameter are you changing and not getting results for?
      arrow_drop_uparrow_drop_downReply reply
      • burrosp
        "Business Exit Month", Exit Multiple and Brokerage Commission
        arrow_drop_uparrow_drop_downReply reply
        • Evan Diaz de Arce
          "Business Exit Month" When you change this you should see that the projections end on whatever date you put into the cell. (see screenshot 1 in link below)

          "Exit Multiple" is just a derived number based on the other inputs that you put in. It defaults to the same multiple as you have at the purchase of the business. (Only cells with orange fonts are inputs)

          "Brokerage Commission" This will only affect the final month that you own the business because it will change the income of the sale (line 43). You should see it have an impact on whatever month you have set as the Business Exit month which you can also see in screenshot 1 attached in the link below.

          https://drive.google.com/file/d/10h0FNYBR0pX6djX6vkSu_pyQm7eSNOr7/view?usp=sharing

          I hope this clears things up, but I'm happy to answer any questions you have.
          arrow_drop_uparrow_drop_downReply reply


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