TUESDAY | DEAL BREAKDOWN
TL;DR
Three businesses scored this week: a $1.35M nail salon in California, a pair of auto repair franchise locations in New Jersey at $1.198M together, and a $1.3M health and beauty brand with products in more than 7,500 retail stores. The first two clear every bar, and one of the two is already gone. The third fails its stress test the moment revenue touches $800,000. Each deal links to its full scored breakdown.
Green means it cleared. Red means it did not. Click any deal for the full model.
🟩 CLEARED AT 3.17x DSCR. NOW GONE.
Nail Salon | California
Asking Price | $1,350,000 |
Earnings (SDE) | $652,752 |
Revenue | $1,685,844 |
Multiple | 2.07x |
The Setup. A nail salon in California, eighteen years in the same trade, doing manicures, pedicures, extensions, and custom nail art. The listing called it remotely run, which in this business means somebody else is at the front desk and the owner is not standing behind it. It cleared every bar on the model at 2.07 times earnings and it survived a twenty percent stress test with room left over. It also came off the market before this email went out, which is the part worth sitting with.
$446,557 a year in your pocket at 2.07x earnings, and it is already gone. See what a good one looks like
🟩 CLEARS AT 3.28x DSCR
Auto Repair Franchise, Two Locations | New Jersey
Asking Price | $1,198,000 |
Earnings (SDE) | $600,000 |
Revenue | $2,000,000 |
Multiple | 2.00x |
The Setup. Two auto repair franchise locations in New Jersey, offered as a package or one at a time, with roughly fifteen years left on both leases. A franchise in this trade buys you brand recognition, a parts program, and a fee that never stops. The seller will carry paper but wants half down, which is a different deal than the one the model runs. And the revenue and earnings behind these numbers are what the seller says the shops produce. The listing says so itself: final valuation subject to verification.
$417,021 a year in your pocket, if the seller’s numbers hold. See the full model
A seller’s number is a starting point, not a finding.
The free 28-minute masterclass walks through the exact structure behind every deal in this issue.
🟥 FAILS STRESS TEST AT 1.51x DSCR
Health And Beauty Brand | Location Independent
Asking Price | $1,300,000 |
Earnings (SDE) | $300,000 |
Revenue | $1,000,000 |
Multiple | 4.33x |
The Setup. A health and beauty products company with its lines on shelves in more than 7,500 retail stores across the United States and Canada, plus a built-out Amazon presence. It owns no factory. Manufacturing, packaging, fulfillment, and compliance all sit with a third-party contract manufacturer, and the office runs from anywhere, including a spare bedroom. Three years old, three people, and a distribution footprint most brands spend a decade trying to build. The shelf space is genuinely real. What the seller wants for it is the whole question.
$101,442 a year in your pocket, and $800,000 of revenue is all it takes to break it. See where it breaks
Two of these cleared and one of the two was gone before this email reached you. The third has real products, real shelf space, and a price the model will not carry. Good business and good deal are two different things, and the red badge is the one to open first.
See you Thursday.
Mike
Want to see how I stress-test every deal against cost shocks, revenue dips, and hidden liabilities before I'd put a dollar at risk? I walk through the entire Bulletproof method in a free 28-minute masterclass.
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