Speed to No.

In deal screening, the most valuable skill isn't finding the “Yes.”

It's how fast you can find the “No.”

The Deal

A niche manufacturing company. Services high-net-worth residential clients.

Purchase price: $1M. SDE: $350K. A 2.8x multiple — common in the small business space.

Add working capital and closing costs: total deal size ~$1.2M.

Financing: 70% SBA, 20% seller note, 10% injection. Your check to close: $120K.

Free cash flow: $160K. DSCR: 1.85. Cash-on-cash: 130%.

On paper, this deal is exceptional.

The Kill Question

Then you ask one question: what does the owner actually do?

He is the artistic designer. The head of sales. The master coordinator who keeps every project on track.

For any business I buy, I need to install a GM within 90 days without running operations myself.

You cannot hire a single person with this owner's combined skill set. Not at any price.

The Math That Kills It

So you need multiple hires. Say two. A designer and a sales lead.

Market rate for both: $160K–$200K loaded.

Free cash flow was $160K.

You just eliminated it. Depending on hire quality, you are running negative.

That is not a business acquisition. That is buying yourself two new problems.

Pass. Next.

The Framework

I run this filter on 50+ listings a month using SearcherOS. Most are dead in 10 minutes. Owner-operator dependency. Revenue concentration. DSCR that does not survive a stress test.

The 2% that clear the screen are worth your time. The 98% are not.

Speed to No buys time. Time is the asset.