Cornerstone Business BrokersMain Street M&A intermediary · Phoenix, ArizonaCornerstone defended $180,000 of owner add-backs on a previously declined acquisition and closed in 41 days.
$180k
Add-backs defended
41 days
LOI to close
1.36x
Buyer global DSCR documented
Challenge
- The first lender stripped most of the seller's add-backs for lack of evidence, dropping the loan below the purchase price.
- The buyer's exclusivity period had 45 days left.
- The seller's bookkeeper had never prepared a lender-grade schedule.
What they did
- Every add-back re-documented with payroll registers, invoices and a replacement salary survey, each rated for defensibility.
- Buyer's global cash flow modeled with the seller note on standby and the equity injection evidenced.
- Lender-ready acquisition memo exported and shared with two preferred lenders through tracked links.
Results
- Second lender accepted $180,000 of the $212,000 originally claimed.
- Term sheet in 3 business days; close in 41 days.
- The brokerage now prepares the SDE schedule in LoanPacket before listing.
“The written justifications did the work. The second lender accepted the same add-backs the first had rejected.”
M&A intermediary · Cornerstone Business Brokers
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