PROFORMA CASH FLOW TO CALCULATE PURCHASE PRICE

This Proforma Cash Flow to Calculate Purchase Price worksheet is written in Java Script. In order to use it you need a Java capable browser.  If you enter numbers in the worksheet, but nothing happens, you may need to download Java at http://java.com/en/download/manual.jsp.

Printed On:    
Type over only the blue words and numbers. Prepared By:  
       
Proforma Cash Flow - Annualized Period Analyzed:  
   
Net Income, Annual or Stabilized (if negative, enter as a negative)........................    
       
Add-backs  (reductions of historical expenses, or additions to revenues)      
  Historical Interest Expense for period being analyzed....................................    
  Historical Depreciation and Amortization Expenses for period analyzed......    
     
     
     
     
       
Deductions  (additions to historical expenses, or reductions of revenues)      
  Withdrawals REQUIRED by New Owner, if any (annualized).........................  Annually  
     
     
     
     
       
       
       
Proforma Cash Flow to Service Debt, Annual (CFSD).............................................  Annually  
  (This is also called the Net Operating Income, or EBITDA.)      
       
Minimum Required Cash Flow Coverage of Debt Service........................................ x  
  (Standard banking practice is 1.25X minimum, although this varies.)    
   
Maximum Loan Payments for an annual period.....................................................    
   
Maximum Monthly Loan Payment.....................................................................    
   
Assumed Interest Rate (make a little higher than market)...................................... %  
  (As of 6/9//2009, Prime is 3.25% and a frequent margin above that is 2.00%.)       
   
Assumed Term in Years (perhaps 15 years max for purchase analysis)..................  Years  
  (The actual loan term is usually 23 years, up to 25 years.)      
   
Assumed Term in Months (Do not type over number at right.)..................................  Months  
   
   
Maximum Loan  (Do not type over the formula at right.).......................................    
   
   
Assumed Cash Down Payment Percentage.......................................................... %  
   
   
Assumed maximum purchase price, given all assumptions above...........................    
  (Maximum Loan divided by (1-Down Payment Percentage))    
   
   
Cash to New Owner, Annualized    
  Withdrawals Required for New Owner (don't type here)...................................  Required  
  Cash Flow to Service Debt (CFSD) less Maximum Loan Payments................  Additional  
Total Annual Cash to New Owner........................................................................  Total  
   
Average Monthly Cash to New Owner..................................................................    
       
© Copyright by Alan L. Bussey, Car Wash Loans    2009   All rights reserved.    903-876-2308  
   
 
Alan Bussey     Car Wash Loans     817-876-2308      fax:  484-737-1092

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