A Financeable Deal Is Not Automatically a Good Deal

A financeable deal is not automatically a good deal. That is one of the biggest reasons I built Acquisition Decision Engine (ADE). Most searchers already know how to spot an obviously bad deal. The harder problem is the deal that looks close. The debt might work. The seller financing might help. The adjusted EBITDA might support the asking price. The broker may say the deal is SBA prequalified. The CIM may tell a clean story. But then the buyer still has to answer the real questions:Is the cash flow actually lender-quality? Are the add-backs supportable?Is revenue durable? Can the business survive transition? Is this an operator-dependent job disguised as an acquisition? Does the deal still make sense after the excitement wears off? The screenshots below are from a sample deal run through ADE. ADE produced a nuanced result:Proceed with caution. The deal appeared financeable under first-pass SBA assumptions, but ADE still flagged:• declining revenue• weak recurring revenue• owner/operator transition risk• broker-indicated SBA prequalification• unverified add-backs• incomplete LOI readiness• revenue durability concerns That is the gap I am trying to solve. ADE is not meant to replace diligence, lenders, CPAs, attorneys, QofE providers, or operator judgment. It is meant to create a disciplined pre-LOI screening layer before the buyer spends time, money, reputation, and lender credibility on the wrong deal. The goal is simple:Kill bad deals fast. Document why. Move forward only when the deal earns it. I am currently looking for a small group of beta testers. Best fit:• independent searchers• SMB acquisition buyers• self-funded searchers• small holdcos• operators reviewing owner-operated businesses• buyers looking at SBA-sized deals If you have a live deal, old deal, CIM, teaser, or realistic opportunity you want to stress test, I would appreciate the feedback. I am especially looking for people willing to tell me where the screen feels too harsh, too soft, confusing, or missing something. Comment here or DM me if you want access. Screenshots are from a sample deal.