Getting Started

Overview

Luxe Acquisition is an SBA deal underwriting engine. It replaces guesswork with a structured, repeatable financial workflow—from first look at a business all the way to a lender-ready summary.

What this platform does

When you're buying a business with an SBA loan, you need to answer three questions before you commit:

  1. Does the business actually earn what the seller claims?
  2. Will the cash flow comfortably cover the loan payments?
  3. What happens to that coverage if conditions change?

Luxe Acquisition answers all three—with tools that are simple enough to use on your first deal and rigorous enough to pass lender scrutiny.

Tip: Start with the Earning Calculator to normalize the seller's financials before running any other tool. Every subsequent calculation depends on an accurate True Earnings figure.

Recommended workflow

1
Earning Calc

Enter the seller's reported financials and add-backs to produce a normalized True Earnings (SDE) number.

2
Debt Payment

Model your SBA loan (and seller note if applicable) to get your total annual debt service.

3
DSCR Calc

Run the coverage ratio. Confirm you meet or exceed the 1.25x SBA minimum.

4
Stress Test

See how DSCR changes if earnings drop or interest rates rise.

5
Summary

Export a clean deal summary ready to share with your lender or broker.

Tool

Earning Calculator

The Earning Calculator normalizes a seller's financials into a verified True Earnings (SDE) figure that lenders will accept.

Inputs

FieldDescriptionRequired
Fiscal YearThe year of financials you're normalizing (supports up to 3 years)Yes
Revenue AmountTotal gross revenue reported on P&L or tax returnYes
Expense AmountTotal operating expenses before owner adjustmentsYes
Reported SDESeller's stated discretionary earnings, if providedOptional
Owner SalaryOwner's W-2 or draw—this gets added back to SDEYes
Add-BacksIndividual non-recurring or owner-specific expense entriesOptional

Add-Back Confidence Scoring

Each add-back receives a 0–100 confidence score based on category and documentation strength. The score predicts how likely a lender is to accept the add-back:

75–100

High confidence. Lender will likely accept.

40–74

Moderate. Prepare documentation.

0–39

Low. Lender may reject. Exclude from analysis.

Tool

Debt Payment Calculator

Model your SBA 7(a) loan and any seller note to produce a precise annual and monthly debt service figure.

Supported loan types

  • SBA 7(a) loan — primary acquisition financing, up to $5M
  • Seller note — secondary financing from the seller, often on standby for 24 months

Key outputs

  • Monthly payment (principal + interest)
  • Annual debt service (used in DSCR calculation)
  • Total interest paid over loan life
  • Combined blended debt view (SBA + seller note)
Note: The SBA 7(a) interest rate is variable (Prime + lender spread). The calculator allows you to set a base rate and run sensitivity analysis in the Stress Test tool.
Tool

DSCR Calculator

Calculates your Debt Service Coverage Ratio—the primary metric SBA lenders use to approve or deny acquisition loans.

Formula

DSCR = True Earnings (SDE) ÷ Annual Debt Service

SBA thresholds

≥ 1.25x

Meets SBA minimum. Deal is financeable.

1.10–1.24x

Below minimum. Restructure the deal.

< 1.10x

Lender will decline. Do not proceed without major changes.

The tool auto-populates True Earnings from the Earning Calculator and Annual Debt Service from the Debt Payment Calculator, eliminating manual entry errors.

Reference

Glossary

Key terms used throughout the Luxe Acquisition platform.

SDE — Seller's Discretionary Earnings
Net income plus owner's compensation, interest, depreciation, amortization, and any non-recurring expenses. The standard earnings metric for owner-operated businesses.
DSCR — Debt Service Coverage Ratio
SDE divided by annual debt service. SBA requires ≥ 1.25x for loan approval.
Add-Back
An expense charged to the business that is non-recurring or owner-specific, added back to net income to normalize earnings to a true SDE figure.
SBA 7(a) Loan
The primary SBA loan program for business acquisitions. Loans up to $5M, 10-year term for acquisitions, variable interest rate at Prime + lender spread.
Seller Note (Seller Financing)
A loan from the seller to the buyer, representing part of the purchase price. Can count toward SBA equity injection when on full 24-month standby.
Equity Injection
The buyer's minimum cash contribution to an SBA acquisition. Standard SBA 7(a) requires 10% of the total project cost.
Reference

FAQ

Do I need accounting or finance experience to use this?

No. The platform is designed for first-time buyers. Each field includes inline guidance, and outputs are labeled in plain English—not financial jargon.

Can I model more than one deal at a time?

Yes. The Scenarios tool lets you save and compare multiple deal structures side-by-side, including different loan terms, purchase prices, and down payment amounts.

Does this replace a CPA or business broker?

No—and it's not designed to. Luxe Acquisition helps you understand the deal before you engage professionals, so you show up to those conversations informed. Always retain qualified advisors before committing to a purchase.

Is my data saved between sessions?

Yes. All inputs are saved to your account automatically. You can return to any deal in progress at any time.