For small-business buyers · SBA rules changed Oct 1, 2026
Send the CIM or the seller's P&L. A CFA charterholder rebuilds the seller's discretionary earnings (SDE), tests every add-back against the documents you have and runs the 1.25× coverage test your SBA lender will run. First answer in 48–72 hours, for a flat $750.
Fixed fee agreed before you pay · personal reply within one business day
Every engagement is done by Sergei Mochtchenkov, CFA. Charterholder since 2016 · 5.0 from 135 reviews · 304 jobs on Upwork · check the record
| Seller's stated SDE includes the add-backs below | $720,000 | |
| Owner salary & payroll tax W-2 + payroll register | ✓Supported | 142,000 |
| Owner health insurance 2024 invoices pending | ◐Partly supported | 18,000 |
| Depreciation & amortization tax returns | ✓Supported | 64,000 |
| Interest | ✓Supported | 22,000 |
| "One-time" compressor rebuild recurs 2 of 3 years | ✗Not supported | 48,000 |
| Spouse and son on payroll both dispatch daily | ✗Not supported | 66,000 |
| Cash sales not deposited no proof of cash | ✗Not supported | 66,000 |
| SDE that traces | $540,000 |
Illustrative figures, invented to show the method. 10% equity, 10-year loan at 10.5%, $110K replacement manager, $45K maintenance capex. At the seller's $720K the deal shows 1.62×. See the full sample report
SBA SOP 50 10 8.1 changed how lenders underwrite the purchase of a business. Three changes decide whether your deal closes at the price you agreed.
Acquisition loans are tested on the business's actual past cash flow, with a 1.25× minimum for initial acquisitions. Growth projections no longer rescue a thin deal.
Each change of ownership needs an independent valuation ordered by the lender, and total acquisition debt can't exceed the appraised value.
When the business price is $3 million or more, the lender orders its own quality of earnings report, including proof of cash for the trailing twelve months and two fiscal years.
A summary of SOP 50 10 8.1 from SBA's issuance notice and published lender guidance. Your lender's credit policy governs, so confirm specifics with them. Bankable Deal is not affiliated with the U.S. Small Business Administration.
Put in the seller's numbers and the add-backs you're unsure about. The calculator shows coverage both ways and the highest price the loan supports. It runs in your browser; nothing is sent anywhere.
| Annual debt service | – |
| Coverage on the seller's numbers | – |
| Coverage without the doubtful add-backs | – |
| Highest price that clears 1.25× without the doubtful add-backs | – |
Simplified: level payments, no seller note in the coverage test, cash flow = SDE − replacement salary − capex. Lenders apply their own adjustments.
Have the add-backs checked · $750Each step answers one question. Stop as soon as the answer is no. The fee is fixed and agreed in writing before work starts; there is no hourly billing.
Is it worth pursuing?
Will the lender see what I see?
Get me to closing
“It’s been a pleasure working with him. He spend time to take deep understanding of our business and translates that into well-structured financial models.”
After closing. Fractional CFO support from $3,000 a month: monthly reporting, cash planning and lender covenant tracking for the new owner.
Selling instead? A sale-readiness review from $3,500 documents your add-backs and runs a mock lender coverage test, so the buyer's lender doesn't cut your price.
The lender's appraiser and QoE provider work for the lender and arrive late in the process. This comes first and works for you.
| Bankable Deal | Lender-ordered valuation (and QoE at $3M+) | CPA-firm QoE you commission | Reading the CIM yourself | |
|---|---|---|---|---|
| When | Before or right after the LOI | After the loan application | After the LOI | Any time |
| Typical cost | $750 → $4,500–14,500 | Paid by you through the lender | $20,000–50,000 | $0 |
| Turnaround | 48–72 hours, then 7–10 business days | Weeks, on the lender's timeline | 3–6 weeks | Your evenings |
| Works for | You, the buyer | The lender | You | You |
| Question it answers | Do the earnings hold up, and what price clears 1.25×? | Can the lender make this loan? | Are the earnings real, in full depth? | Does the story sound right? |
CPA-firm figures are typical 2026 market ranges reported by buyers and providers, not a quote from any firm.
Six places where small-business deals usually come apart, and where your lender will look first.
Reported revenue tied to actual bank deposits, month by month. Cash the seller says was earned but never deposited doesn't count, for you or the lender.
Each adjustment followed to the ledger, payroll records and tax returns. "One-time" costs that recur get put back.
Where the P&L and the filed returns disagree, and which version a lender will use.
Share of revenue from the top customers, and dependence on key suppliers or on the owner personally.
What the business needs on hand to run, and a peg you can write into the purchase agreement.
Debt service coverage on historical numbers, equity injection, seller note on standby, and the price that still clears 1.25×.
A complete sample Deal Screen for a fictional commercial HVAC company: recast earnings, every add-back checked against the documents, coverage, highest supportable price, and the questions to send the seller.
Read the sample report“Great work, very explanatory, amazing communication highly recommend”
CIM or seller P&L, three years of tax returns if you have them, and your deadline.
Recast earnings, coverage test, highest supportable price, and a 30-minute call.
If the deal is still alive: bank statements, ledger detail, proof of cash and the full coverage model.
Lender package, purchase agreement economics, and handoffs with the lender's appraiser and QoE provider.
CFA charterholder since 2016 · Founder, Bankable Deal
Every engagement is done by Sergei personally, start to finish. He has spent more than 19 years in finance, including CFO and VP of Finance seats at operating companies, and builds the models himself: lender packages, debt service coverage, buy-side diligence and valuation work. Models he built have supported more than $1 billion in debt and equity raises.
Each record below links to a public profile you can check yourself.
CFA Institute member directoryActive member · charter awarded 24 Oct 2016Open the directory entry UpworkTop Rated Plus · 100% Job Success · 5.0 from 135 reviews · 304 jobs · 20,000+ hoursOpen the Upwork profile LinkedInVerified profile · 16,000+ followers · career historyOpen the LinkedIn profileFigures as shown on each profile, October 2026.
“Sergei is absolutely phenomenal to work with. A true professional, he has significantly helped my company and provided invaluable support on multiple important business calls.”
“Sergei is honest, hardworking and knows what he's doing.”
“Sergei is excellent in everything he does and a true pleasure to work with.”
An independent read of the numbers for you, the buyer, on a flat fee, before you commit more money. Knowing the edges is part of trusting the numbers.
Those reports come late, are written for the lender, and are paid for by you either way. If the earnings don't hold up, you find out after paying for them and after weeks of exclusivity. A Deal Screen tells you within three days whether the numbers support the price, while you can still renegotiate or walk.
It covers what a lender tests: proof of cash, add-back tracing, tax returns against the books, concentration, working capital and coverage. A full QoE from a CPA firm usually costs $20,000–50,000 and takes three to six weeks. If your deal is $3M or more and SBA-financed, the lender's QoE is still required; this work shows you the likely issues before the lender's QoE does.
For a Deal Screen: the CIM or the seller's P&L, and tax returns if you have them. For Bankability Diligence: bank statements for the last two fiscal years and the trailing twelve months, the general ledger or QuickBooks or Xero access, and payroll records. A data request list goes out on day one.
Businesses with roughly $300K to $3M in seller's discretionary earnings or EBITDA, priced around $1M to $15M (fees above $5M are quoted), financed with an SBA 7(a) loan, a conventional loan or seller financing. Most industries, in the US and Canada.
Yes, in Deal Desk to Close. Where SBA rules require it, the fee is disclosed to your lender on SBA Form 159. Fees come only from you.
Your documents are seen only by Sergei. He will sign your NDA, or a joinder to the seller's NDA, before you send anything sensitive.
Fill in what you know. The CIM and P&L can follow by email.
Not ready? Choose Free 15-minute call in the form and ask your questions first.
“Sergei worked well with us and was committed and patient to complete his work to a high standard. He communicated well, and was able to do a number of reviews and adjustments…”