Work through a decision · Last reviewed October 10, 2026
Accounting practice acquisition budget calculator
A purchase price is only one use of funds. Model the initial cash need and the cash left after owner compensation and an amortizing acquisition loan.
What does your scenario look like?
All starting numbers are illustrative. Calculations run in your browser. These entries are not saved or submitted.
A cash buffer, not the seller’s receivables or a working-capital peg. Avoid double counting.
Illustrative input, not a current rate quote.
Use normalized operating cash flow before these two deductions. If owner pay is already deducted, enter zero below.
What do the inputs imply?
Total acquisition uses
Price plus operating cash, transaction costs, and one-time integration costs.Buyer cash required
Total uses less the loan proceeds entered. This is not a lender equity requirement.Monthly loan payment
Level monthly amortization; excludes lender fees and future rate changes.Annual debt service
Cash after owner pay and debt
Before tax, capital expenditure, and costs omitted from the inputs.Illustrative coverage ratio
(Annual pre-debt cash flow − owner pay) ÷ annual debt service. Lender definitions differ.How is the scenario calculated?
Total uses = price + opening operating cash + transaction costs + integration costs.
Buyer cash = total uses − loan proceeds. This does not determine an SBA equity injection requirement.
Monthly payment = principal × monthly rate ÷ [1 − (1 + monthly rate)^(−months)]. At zero interest, principal ÷ months.
Cash after debt = annual pre-debt cash flow − owner pay − 12 monthly payments.
What needs separate review?
The model assumes level monthly payments and a constant rate. Lenders use their own eligibility, equity, and coverage rules. It excludes tax, additional loans, capital spending, and unentered costs. A positive result is not approval or proof that seasonal cash needs are funded.
Use actual documents for a transaction. Jason and the HedgeStone team can discuss the sale or acquisition questions behind the numbers in an intro call.
SBA: 7(a) loan uses, terms, and lender review supports the policy context; the scenario formulas are original educational analysis.
Where should you go next?
Your next chapter starts with a conversation
Talk through the deal.
Before you make the decision.
Bring your questions about value, timing, buyers, or what comes next. Start with a confidential intro call with Jason Taken.