Deborah Bacarella

President/Broker

Michael Bacarella

Past President FBBA

Florida Business Brokers Association

4722 NW Boca Raton Blvd

Corporate Plaza C-105

Boca Raton, Fl 33431

Office: 561-988-0800

Fax: 561-988-0899

Let's say you want to earn about $80,000 per year from a business. You have found an opportunity that produces a cash flow of $115,000. It is priced at $280,000 with a $90,000 down payment and note payments of $3057 per month for 7 years, including 9% interest. Can you afford to buy it?

Down Payment $90,000

Note to seller (Paid at $3,057/mo) $190,000

Total Price $280,000

Total Cash Flow (The price is 2.4 times total cash flow) $115,000

The Annual Debt Service ($3,057/mo times 12) $ 36,683

The remaining $78,317 is available to the new owner $78,317

Usually business purchases work best if dept payments are kept to about 35% or less in this case it is 32%