🧮 Acquisition Terms Simulator

Model different deal structures and understand the real cost and risk trade-offs

Deal Structure

30% of deal
50% of deal
10% of deal
10% of deal

Business Assumptions

Multiple: 6.3x

💰 Cash Required at Close

£4,000,000
80% of enterprise value

📊 Blended WACC

12.5%
Weighted average cost of capital

📈 Estimated IRR

28.0%
✓ Meets target

⚠️ Debt Service Coverage

1.85x
Healthy coverage

Deal Structure Breakdown

True Cost of Capital

Senior Debt 7.5%
Seller Note 9.0%
Earn-out (risk-adjusted) 8.0%
Equity (required return) 25%

Seller's Net Proceeds (Estimated)

Cash at Close £4,000,000
Deferred Payments (gross) £1,000,000
Less: Tax & time value discount -£100,000
True Net Present Value £4,900,000

Assumes 20% CGT on deferred amounts and 5% time value discount. Earn-out shown at maximum.

Need help structuring your deal?

This simulator shows the mechanical trade-offs, but the right structure depends on your strategic goals, risk tolerance, and market conditions.