Indevest

Understand the financial measures behind a business purchase.

See the inputs, formula, result, and buyer impact for each measure.

Business acquisition

Can the business cover the loan?

Shows whether annual operating earnings cover annual loan payments.

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What return does the entered cash contribution produce?

Shows annual buyer cash flow relative to the entered cash contribution.

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What operating yield does the asking price represent?

Shows annual operating earnings relative to asking price before financing.

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How does the asking price compare with your valuation assumptions?

Uses one selected method to show a point estimate or range and compare the asking price with the base estimate.

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How do the required return and financing assumptions affect price benchmarks?

Separates the comparison-yield capital benchmark from the financing-sensitive NIAT-preserving purchase benchmark.

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Income property

What cash flow remains after property expenses and debt payments?

Shows rent minus property expenses and debt payments using NOI and CAP Rate terminology.

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Analyze your own opportunity.

Enter your numbers to review all the measures together.

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