Floor & Carpet Company Acquisition Projection Analysis

April 26, 2022

Service: Projection Analysis with Business Modeling

Client: Floor and Carpet Company

Need: Client had an existing floor/carpet business and found a Lender who was interested in financing the acquisition of another carpet business. The Loan Officer sent the client to us for Projection Analysis and Business Model, which was needed by the Bank for Underwriting and to understand exactly how the business will make money.

EZFS: We helped the client create a detailed 2-year projection analyses broken down by the month, by creating a Business Model first. The model contained information and data that we gathered from the Client, and details of average price points, customer quantity, and the exact formulas of how the business will collect revenues on every transaction – daily, weekly, or monthly. We then created detailed projections with seasonality, trends, realistic and budgeted expenses, and the Debt Service Coverage Ratios (DSCR) that the Bank requires to determine the overall anticipated health of Cash Flow. The projections were ultimately used for underwriting and presenting to the decision makers for an approval on the loan. The loan was approved and funded.