Calculator
Business Acquisition Calculator
See the full cash a business purchase really needs, the part a lender will likely fund, and the gap most buyers miss, before you make an offer.
Leave at zero if stock is already included in the asking price.
Goodwill $0Tangible assets $0
Your deal snapshot
The gap is the part beyond what a bank will lend against the business earnings and your security. It is what we structure and close for you, through the right lender, vendor finance, a working capital facility, or additional security. Send us a short enquiry for a free, confidential assessment and we will map your exact position and the plan to fund it. No meeting required to get an answer.
↓ See how it adds up ↓
What makes up the total
How the funding comes together
The bank figure is the lower of what the earnings can service and what the security in the deal supports. More goodwill means less security to lend against, which is why it widens the gap even when the earnings are strong. The real number depends on the lender, the business, and your profile, which is what we confirm with you.
What we would check next
- Whether the goodwill level is fundable for this type of business
- Whether the business earnings support the debt with a serviceability buffer
- Whether vendor finance would help bridge the gap
- Whether the working capital needs its own facility
- Which lenders are realistic before you sign
Get this checked before you sign heads of agreement. Bring the business financials, the asking price and your deposit position, and we will map what a lender is likely to support.
Enquire nowIndicative estimate only, based on typical lender settings. Not a credit quote, approval or advice, and duty figures are general, so confirm with your accountant and RevenueWA. Your actual position depends on the lender and how the deal is structured.
Want these numbers checked? Send the result across and we'll tell you what a lender would make of it. No meeting required.
Why a business costs more than its price
Most buyers plan for the purchase price and a deposit. The cash that catches them out sits in the gaps. It is the working capital to run the business from day one, the WA transfer duty on the goodwill and assets, the due diligence and legal costs, and the part of the purchase a bank will not lend against. Two things drive what a bank will lend. One is what the business earns. The other is how much of the price is goodwill rather than tangible assets. Move either and you can watch the gap open or close.
This estimate gives you the shape of a deal. The exact position depends on the lender, the security available, and how the purchase is structured, which is the work we do with you. For how lenders actually assess a business purchase, read our acquisition finance guide.
Frequently asked questions
How much deposit do I need to buy a business?
More than the deposit alone, which is the point this calculator makes. The cash you need to complete is the deposit plus WA transfer duty on the goodwill and assets, working capital to run the business through its first 60 to 90 days, legal and due diligence costs, and any trading stock payable on top of the price. Buyers who budget only for the deposit routinely find a gap at the settlement table. Enter your price and available cash and the tool sizes that gap.
Why will a bank not lend against the full purchase price?
Because much of the price is usually goodwill rather than tangible assets. A lender advances readily against equipment, vehicles and property, which can be sold if things go wrong. Goodwill has no resale value on its own, so it is funded far more conservatively and against the strength of the earnings instead. The higher the goodwill share of your price, the larger the cash contribution you will need.
Do I pay stamp duty when buying a business in WA?
Yes. WA still charges transfer duty on a business purchase, including on the goodwill component, which is a genuine difference from some other states and a common surprise for interstate buyers. This calculator includes an indicative duty figure in the cash to complete. Duty figures here are general, so confirm your exact position with your accountant and RevenueWA before you commit.
How much working capital do I need after settlement?
Enough to run the business before its own cash flow catches up, which this calculator models as a buffer across the first 60 to 90 days. Wages, rent, suppliers and stock all keep running from day one, while receivables from the previous owner often do not transfer with the business. Underfunding this is one of the most common reasons a sound acquisition runs into trouble in its first quarter.