For buyers of small businesses, before the LOI

You like the deal. Do you trust the numbers?

Spot the red flags early. Save money. Save time.

SKERRYVORE ADVISORY | DEAL SCREEN | E001-DS Illustrative sample — fictional company

2. The headline, and the matters to investigate

Headline The IM presents FY25 adjusted EBITDA of €867k. On the seller’s own documents, €38k of that figure is not in the compiled accounts, and €178k of the €304k of add-backs is not evidenced in the package. On evidenced items only, the seller’s figure is €651k.

Matters that warrant further investigation — ranked by financial significance

#MatterEffect on the seller’s figure§

1Owner remuneration. Items 1, 2, 4 and 7 add back €214k. The package evidences €78k.up to −€136k5

2Largest customer and the heat-pump programme. Stichting Woonkracht is 15.9% of FY25 revenue.not quantifiable from the package4, 7

3IM and compiled accounts disagree. FY25 EBITDA is €563k in the IM and €525k in the compiled accounts.−€38k3

4Related-party rent. Item 3 adds back €24k as “above market”. No lease or valuation in the package.up to −€24k5

5One-off marketing. Item 6 is contradicted by a steady marketing run-rate.−€18k5

3. Do the seller’s documents agree with each other?

€kIMCompiledFiledVarianceResult

Revenue FY255,2385,238—–Agrees

EBITDA FY24466466—–Agrees

EBITDA FY25563525—38INVESTIGATE

Equity Dec 2025—394394–Agrees

SKERRYVORE ADVISORY | DEAL SCREEN | E001-DS Illustrative sample — fictional company

6. What your proposed price and terms imply

Implied EV / EBITDAAs presentedOn compiled basisEvidenced only

EBITDA (€k)867829651

At your proposed price of €3.60m4.15x4.34x5.53x

At the asking price of €4.10m4.73x4.95x6.30x

Debt service coverage on your stated terms — year 1

€kAs presentedOn compiledEvidenced only

EBITDA (from the range)867829651

Less: your MD cost above the €100k assumed(50)(50)–

Less: maintenance capex (your assumption)(90)(90)(90)

Less: corporate tax (estimate)(121)(111)(78)

Cash available for debt service606578483

Year-1 debt service429429429

Debt service coverage1.41x1.35x1.13x

Your lender’s covenant1.20x1.20x1.20x

What this means for you. On the seller’s figure your structure clears your lender’s covenant. On evidenced items only it does not (1.13x against 1.20x). Of the €216k between the two, €160k sits in items 1–4, the owner and related-party add-backs.

SKERRYVORE ADVISORY | DEAL SCREEN | E001-DS Illustrative sample — fictional company

5. The seller’s add-backs, and the indicative range

#Add-backClaimed FY25FlagEvidencedWhy

1Management fee above replacement salary110Partly supported60€210k fee to the holding. On your €150k all-in MD cost the excess is €60k, not €110k.

2DGA spouse’s salary48Unknown–Nothing in the package describes what the spouse does.

3Related-party rent above market24Unknown–No lease, no rent review and no valuation in the package.

4DGA vehicles and travel38Unknown–No GL detail; the private element cannot be separated.

5Severance and legal costs48Supported48Consistent with the P&L: a new €38k severance line in FY25.

6Rebrand and website18Contradicted–Marketing is €38k, €41k, €44k over three years: a steady run-rate.

7DGA pension premium18Supported18Your planned €150k MD cost already includes a pension.

Total304126Add-backs = 58% of compiled FY25 EBITDA (screen threshold: 20%).

The indicative range

FY25 EBITDA — the effect of the seller’s own adjustments on the seller’s own figure

Seller’s figure, as presented (IM) €867k … restated to the compiled accounts €829k … evidenced items only €651k €0k€200k€400k€600k€800k€1,000k

Seller’s FY25 adjusted EBITDA, as presented in the IM867

… restated to start from the compiled accounts (−€38k, section 3)829

… evidenced items only (item 1 in part, items 5 and 7)651

The effect of the seller’s own adjustments on the seller’s own figure. This is not an adjusted EBITDA of ours, and the lower end is not a floor.

Skerryvore Advisory · Confidential — prepared for De Vries Acquisitie B.V. onlyPage 5 of 10

Pages from the example Deal Screen · fictional company

For potential buyers weighing a business before they commit to an offer or a diligence budget: a fixed-fee, independent read of the seller’s financial information by a transaction specialist with Big Four deal experience. Within three working days you know what the seller’s earnings figure rests on, the matters that warrant further investigation, and what to ask next.

Book a free 20-minute call

Next available start: Tue 27 Oct2 Deal Screens available

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Before you book

Four questions buyers ask first

What does the Deal Screen provide?

A fixed list of checks on the documents you already hold. The same list on every deal, so you know exactly what you’re paying for.

Whether the seller’s documents agree with each other: the IM, the accounts and the filed balance sheet
The three-year trend, if available, with the movements that matter tested
Every add-back flagged Supported, Contradicted or Unknown, on the evidence in the pack
The indicative range: the seller’s own figure, down to evidenced items only
Owner pay against the cost of replacing them, with the benchmark named
The multiple and debt-service cover your price and terms imply
Debt-like items visible on the balance sheet
A fifteen-point screen: Observed, Not observed or Cannot tell
Priority questions for the seller, most important first
What could not be seen, and what full diligence would test

A written report of about ten pages A walkthrough call on what it found No verdict. The decision stays yours

Why spend money before I’ve signed an LOI?

Because after the LOI, every problem costs more to find. You’re into exclusivity, lawyers, bank fees and a quality of earnings review (QoE) that typically runs US$20,000–35,000.¹ A Deal Screen runs the cheap tests first, for a fixed US$1,500 / €1,500: do the seller’s documents agree, which add-backs have evidence, and does the deal clear your lender’s covenant at your price? If you go on to full due diligence with Skerryvore, the fee is credited in full.

Step 1 · before the LOI Deal Screen US$1,500 2–3 business days. Shows what the seller’s number rests on.

only if the numbers hold up

Step 2 · after the LOI Quality of earnings (QoE) US$20,000–35,000 4–6 weeks at an established firm.¹

¹ Typical buy-side fee and timeline for a business under US$5m enterprise value, usually a limited-scope review: BD Emerson, Quality of Earnings Report Cost, July 2026. Smaller boutique firms quote around US$10,000–20,000 for a focused QoE: System Six, What Does a Quality of Earnings Report Cost?, September 2026.

I can read a P&L. Why pay someone else?

A business can look great on paper and still be a bad investment. For first-time buyers without a finance team behind them, knowing what to trust, what to question and what to investigate further can be the hardest part. Every deal raises similar questions:

Which add-backs are supported by evidence and which are the sellers opinion?
Which documents should I ask for now, and which can wait for diligence?
Are revenue and margins telling the full story?
What should I ask the broker, and what will sound naïve?

A Deal Screen answers those from the seller’s own documents.

Once you’ve fallen for a deal, it can be hard to see it clearly. We have no stake in whether it closes.

I’m already stretched. Will this slow me down?

It should speed you up. It takes about 45 minutes of your time: the documents you already hold, then one call. In return, the next steps are already worked out: priority questions for the seller, the documents to request next, and what full diligence should focus on.

You go back to the broker within days with specifics, not a general list.

How the services fit together

Where the Deal Screen fits

You’re hereStep 1 · Reviewing a businessDeal ScreenWhat the seller’s numbers rest on, before you make an offer.US$1,500 / €1,500 · 2–3 business days

Step 2 · Under LOI, with an SBA loanQoE ReviewA buyer-side read of the lender’s quality of earnings report.US$3,500 · 3–5 business days · US buyersSee the QoE Review → Step 3 · Before you completeFull due diligenceBuy-side financial due diligence, scoped to your deal.On request · indicative US$12,000–15,000Ask about full due diligence →

Who you’ll work with

Will Stevenson ACA

Ex-Big Four Deal Advisory · Chartered Accountant

Will is a Chartered Accountant (ICAEW) with nine years of experience across audit, financial due diligence and deal advisory, including work at PwC, Grant Thornton and KPMG.

He has worked on buy-side and sell-side due diligence for private-equity-backed and mid-market deals of £30m–£100m, helping buyers and investors understand the numbers behind a deal and the risks that matter.

At Skerryvore Advisory, he brings that experience to smaller-business acquisitions, helping investors gain the same clear picture of what they’re buying before they commit.

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