A clear answer
Longer collection periods tie up cash even if reported sales and profit remain unchanged. Measure the additional funding need separately from an operating loss.
Extra funding ≈ annual credit revenue × additional collection days ÷ 365.
For buyers
Use credit sales rather than cash sales in a collection model. The example assumes all modelled revenue is on credit; change that input for the actual business.
For sellers
Supply an aged receivables schedule with collection evidence and a consistent cut-off. Separate timing differences from amounts that may not be collected.
Build the evidence
- Identify the credit-sales base
- Review subsequent collections
- Distinguish delayed cash from recurring loss
Choose your sector example
Each example below demonstrates this method for a different operating model. All amounts and rates are hypothetical teaching inputs, not actual listings, UAE market averages or sector benchmarks. The figures do not establish an expected investment return. Use the actual interest offered and the financial definitions supplied for that transaction.
Cafés · Restaurants · Bakeries · Cloud kitchens · Catering businesses · Hair and beauty salons · Barbershops · Spas · Laundries · Cleaning businesses · Pest-control businesses · HVAC maintenance businesses · Facilities management businesses · Car washes · Auto repair workshops · Car rental businesses · Logistics businesses · Courier businesses · Warehousing businesses · Freight forwarding businesses · E-commerce businesses · Fashion retailers · Convenience stores · Pet retail and grooming businesses · Furniture retailers · Dental and medical clinics · Physiotherapy practices · Gyms · Pilates studios · Training centres · Tutoring businesses · Nurseries · Software service businesses · IT support businesses · Marketing agencies · Accounting service practices · Printing businesses · Packaging manufacturers · Joinery workshops · Holiday-home management businesses
Cafés — Customer collections
Operating driver: paid cups and food orders per day. Check whether delivery, takeaway and dine-in orders have different contribution margins.
Evidence to prepare: point-of-sale exports reconciled to card settlements.
Assumptions: asking price, entry costs and additional opening working capital are separate amounts. Base annual cash includes recurring costs, management, tax and maintenance unless the specific adjustment in this example states otherwise. For an actual business, reconcile that definition before calculating.
| Input or result | Illustrative amount |
|---|---|
| Asking price | AED 650,000 |
| Entry costs | AED 30,000 |
| Initial operating working capital | AED 80,000 |
| Base total initial capital | AED 760,000 |
| Base annual buyer cash flow | AED 210,000 |
| Modelled annual revenue | AED 1,650,000 |
| Extra collection time | 20 days on all modelled revenue |
| Additional cash tied up | AED 90,411 |
| Adjusted annual cash flow | AED 210,000 |
| Adjusted initial capital | AED 850,411 |
| Adjusted annual cash yield | 24.7% |
| Simple payback at constant adjusted cash | 4.05 years |
In this example the base annual cash yield is 27.6%. The adjusted result is 24.7%, using AED 210,000 of annual cash against AED 850,411 of capital. The difference is a mechanical result of the specified inputs. It is not evidence of the cash this type of business usually earns, and it should not be substituted for a verified business forecast.
Cafés acquisition guide · Explore businesses in this broader sector
Restaurants — Customer collections
Operating driver: covers, average spend and delivery orders. Separate food cost from delivery commission before comparing channels.
Evidence to prepare: daily sales reports reconciled to delivery-platform remittances.
Assumptions: asking price, entry costs and additional opening working capital are separate amounts. Base annual cash includes recurring costs, management, tax and maintenance unless the specific adjustment in this example states otherwise. For an actual business, reconcile that definition before calculating.
| Input or result | Illustrative amount |
|---|---|
| Asking price | AED 707,500 |
| Entry costs | AED 31,750 |
| Initial operating working capital | AED 84,500 |
| Base total initial capital | AED 823,750 |
| Base annual buyer cash flow | AED 223,500 |
| Modelled annual revenue | AED 1,772,500 |
| Extra collection time | 20 days on all modelled revenue |
| Additional cash tied up | AED 97,123 |
| Adjusted annual cash flow | AED 223,500 |
| Adjusted initial capital | AED 920,873 |
| Adjusted annual cash yield | 24.3% |
| Simple payback at constant adjusted cash | 4.12 years |
In this example the base annual cash yield is 27.1%. The adjusted result is 24.3%, using AED 223,500 of annual cash against AED 920,873 of capital. The difference is a mechanical result of the specified inputs. It is not evidence of the cash this type of business usually earns, and it should not be substituted for a verified business forecast.
Restaurants acquisition guide · Explore businesses in this broader sector
Bakeries — Customer collections
Operating driver: daily batches sold before spoilage. Yield per batch matters because unsold production consumes both ingredients and labour.
Evidence to prepare: production sheets matched to till sales.
Assumptions: asking price, entry costs and additional opening working capital are separate amounts. Base annual cash includes recurring costs, management, tax and maintenance unless the specific adjustment in this example states otherwise. For an actual business, reconcile that definition before calculating.
| Input or result | Illustrative amount |
|---|---|
| Asking price | AED 765,000 |
| Entry costs | AED 33,500 |
| Initial operating working capital | AED 89,000 |
| Base total initial capital | AED 887,500 |
| Base annual buyer cash flow | AED 237,000 |
| Modelled annual revenue | AED 1,895,000 |
| Extra collection time | 20 days on all modelled revenue |
| Additional cash tied up | AED 103,836 |
| Adjusted annual cash flow | AED 237,000 |
| Adjusted initial capital | AED 991,336 |
| Adjusted annual cash yield | 23.9% |
| Simple payback at constant adjusted cash | 4.18 years |
In this example the base annual cash yield is 26.7%. The adjusted result is 23.9%, using AED 237,000 of annual cash against AED 991,336 of capital. The difference is a mechanical result of the specified inputs. It is not evidence of the cash this type of business usually earns, and it should not be substituted for a verified business forecast.
Bakeries acquisition guide · Explore businesses in this broader sector
Cloud kitchens — Customer collections
Operating driver: fulfilled orders after refunds. Measure contribution after commission, packaging, discounts and refunds by virtual brand.
Evidence to prepare: platform-level order exports and settlement statements.
Assumptions: asking price, entry costs and additional opening working capital are separate amounts. Base annual cash includes recurring costs, management, tax and maintenance unless the specific adjustment in this example states otherwise. For an actual business, reconcile that definition before calculating.
| Input or result | Illustrative amount |
|---|---|
| Asking price | AED 822,500 |
| Entry costs | AED 35,250 |
| Initial operating working capital | AED 93,500 |
| Base total initial capital | AED 951,250 |
| Base annual buyer cash flow | AED 250,500 |
| Modelled annual revenue | AED 2,017,500 |
| Extra collection time | 20 days on all modelled revenue |
| Additional cash tied up | AED 110,548 |
| Adjusted annual cash flow | AED 250,500 |
| Adjusted initial capital | AED 1,061,798 |
| Adjusted annual cash yield | 23.6% |
| Simple payback at constant adjusted cash | 4.24 years |
In this example the base annual cash yield is 26.3%. The adjusted result is 23.6%, using AED 250,500 of annual cash against AED 1,061,798 of capital. The difference is a mechanical result of the specified inputs. It is not evidence of the cash this type of business usually earns, and it should not be substituted for a verified business forecast.
Cloud kitchens acquisition guide · Explore businesses in this broader sector
Catering businesses — Customer collections
Operating driver: contracted meals and profitable events. Separate repeat meal contracts from irregular event bookings.
Evidence to prepare: event invoices matched to deposits and delivery evidence.
Assumptions: asking price, entry costs and additional opening working capital are separate amounts. Base annual cash includes recurring costs, management, tax and maintenance unless the specific adjustment in this example states otherwise. For an actual business, reconcile that definition before calculating.
| Input or result | Illustrative amount |
|---|---|
| Asking price | AED 880,000 |
| Entry costs | AED 37,000 |
| Initial operating working capital | AED 98,000 |
| Base total initial capital | AED 1,015,000 |
| Base annual buyer cash flow | AED 264,000 |
| Modelled annual revenue | AED 2,140,000 |
| Extra collection time | 20 days on all modelled revenue |
| Additional cash tied up | AED 117,260 |
| Adjusted annual cash flow | AED 264,000 |
| Adjusted initial capital | AED 1,132,260 |
| Adjusted annual cash yield | 23.3% |
| Simple payback at constant adjusted cash | 4.29 years |
In this example the base annual cash yield is 26.0%. The adjusted result is 23.3%, using AED 264,000 of annual cash against AED 1,132,260 of capital. The difference is a mechanical result of the specified inputs. It is not evidence of the cash this type of business usually earns, and it should not be substituted for a verified business forecast.
Catering businesses acquisition guide · Explore businesses in this broader sector
Hair and beauty salons — Customer collections
Operating driver: paid appointments per stylist hour. Track how much revenue follows individual stylists rather than the salon brand.
Evidence to prepare: appointment bookings matched to payments.
Assumptions: asking price, entry costs and additional opening working capital are separate amounts. Base annual cash includes recurring costs, management, tax and maintenance unless the specific adjustment in this example states otherwise. For an actual business, reconcile that definition before calculating.
| Input or result | Illustrative amount |
|---|---|
| Asking price | AED 937,500 |
| Entry costs | AED 38,750 |
| Initial operating working capital | AED 102,500 |
| Base total initial capital | AED 1,078,750 |
| Base annual buyer cash flow | AED 277,500 |
| Modelled annual revenue | AED 2,262,500 |
| Extra collection time | 20 days on all modelled revenue |
| Additional cash tied up | AED 123,973 |
| Adjusted annual cash flow | AED 277,500 |
| Adjusted initial capital | AED 1,202,723 |
| Adjusted annual cash yield | 23.1% |
| Simple payback at constant adjusted cash | 4.33 years |
In this example the base annual cash yield is 25.7%. The adjusted result is 23.1%, using AED 277,500 of annual cash against AED 1,202,723 of capital. The difference is a mechanical result of the specified inputs. It is not evidence of the cash this type of business usually earns, and it should not be substituted for a verified business forecast.
Hair and beauty salons acquisition guide · Explore businesses in this broader sector
Barbershops — Customer collections
Operating driver: paid cuts per available chair hour. Chair utilisation must be evaluated by barber and by day.
Evidence to prepare: booking and walk-in till records matched to bank receipts.
Assumptions: asking price, entry costs and additional opening working capital are separate amounts. Base annual cash includes recurring costs, management, tax and maintenance unless the specific adjustment in this example states otherwise. For an actual business, reconcile that definition before calculating.
| Input or result | Illustrative amount |
|---|---|
| Asking price | AED 995,000 |
| Entry costs | AED 40,500 |
| Initial operating working capital | AED 107,000 |
| Base total initial capital | AED 1,142,500 |
| Base annual buyer cash flow | AED 291,000 |
| Modelled annual revenue | AED 2,385,000 |
| Extra collection time | 20 days on all modelled revenue |
| Additional cash tied up | AED 130,685 |
| Adjusted annual cash flow | AED 291,000 |
| Adjusted initial capital | AED 1,273,185 |
| Adjusted annual cash yield | 22.9% |
| Simple payback at constant adjusted cash | 4.38 years |
In this example the base annual cash yield is 25.5%. The adjusted result is 22.9%, using AED 291,000 of annual cash against AED 1,273,185 of capital. The difference is a mechanical result of the specified inputs. It is not evidence of the cash this type of business usually earns, and it should not be substituted for a verified business forecast.
Barbershops acquisition guide · Explore businesses in this broader sector
Spas — Customer collections
Operating driver: completed treatments per room hour. Unused package balances must be separated from newly earned revenue.
Evidence to prepare: treatment register matched to package redemptions.
Assumptions: asking price, entry costs and additional opening working capital are separate amounts. Base annual cash includes recurring costs, management, tax and maintenance unless the specific adjustment in this example states otherwise. For an actual business, reconcile that definition before calculating.
| Input or result | Illustrative amount |
|---|---|
| Asking price | AED 1,052,500 |
| Entry costs | AED 42,250 |
| Initial operating working capital | AED 111,500 |
| Base total initial capital | AED 1,206,250 |
| Base annual buyer cash flow | AED 304,500 |
| Modelled annual revenue | AED 2,507,500 |
| Extra collection time | 20 days on all modelled revenue |
| Additional cash tied up | AED 137,397 |
| Adjusted annual cash flow | AED 304,500 |
| Adjusted initial capital | AED 1,343,647 |
| Adjusted annual cash yield | 22.7% |
| Simple payback at constant adjusted cash | 4.41 years |
In this example the base annual cash yield is 25.2%. The adjusted result is 22.7%, using AED 304,500 of annual cash against AED 1,343,647 of capital. The difference is a mechanical result of the specified inputs. It is not evidence of the cash this type of business usually earns, and it should not be substituted for a verified business forecast.
Spas acquisition guide · Explore businesses in this broader sector
Laundries — Customer collections
Operating driver: paid garments or kilograms processed. Distinguish retail processing from lower-margin outsourced work.
Evidence to prepare: ticket logs matched to collections and bank deposits.
Assumptions: asking price, entry costs and additional opening working capital are separate amounts. Base annual cash includes recurring costs, management, tax and maintenance unless the specific adjustment in this example states otherwise. For an actual business, reconcile that definition before calculating.
| Input or result | Illustrative amount |
|---|---|
| Asking price | AED 1,110,000 |
| Entry costs | AED 44,000 |
| Initial operating working capital | AED 116,000 |
| Base total initial capital | AED 1,270,000 |
| Base annual buyer cash flow | AED 318,000 |
| Modelled annual revenue | AED 2,630,000 |
| Extra collection time | 20 days on all modelled revenue |
| Additional cash tied up | AED 144,110 |
| Adjusted annual cash flow | AED 318,000 |
| Adjusted initial capital | AED 1,414,110 |
| Adjusted annual cash yield | 22.5% |
| Simple payback at constant adjusted cash | 4.45 years |
In this example the base annual cash yield is 25.0%. The adjusted result is 22.5%, using AED 318,000 of annual cash against AED 1,414,110 of capital. The difference is a mechanical result of the specified inputs. It is not evidence of the cash this type of business usually earns, and it should not be substituted for a verified business forecast.
Laundries acquisition guide · Explore businesses in this broader sector
Cleaning businesses — Customer collections
Operating driver: billable cleaner hours after travel. Paid travel time reduces the proportion of staff hours that can be sold.
Evidence to prepare: job sheets matched to customer invoices and payroll.
Assumptions: asking price, entry costs and additional opening working capital are separate amounts. Base annual cash includes recurring costs, management, tax and maintenance unless the specific adjustment in this example states otherwise. For an actual business, reconcile that definition before calculating.
| Input or result | Illustrative amount |
|---|---|
| Asking price | AED 1,167,500 |
| Entry costs | AED 45,750 |
| Initial operating working capital | AED 120,500 |
| Base total initial capital | AED 1,333,750 |
| Base annual buyer cash flow | AED 331,500 |
| Modelled annual revenue | AED 2,752,500 |
| Extra collection time | 20 days on all modelled revenue |
| Additional cash tied up | AED 150,822 |
| Adjusted annual cash flow | AED 331,500 |
| Adjusted initial capital | AED 1,484,572 |
| Adjusted annual cash yield | 22.3% |
| Simple payback at constant adjusted cash | 4.48 years |
In this example the base annual cash yield is 24.9%. The adjusted result is 22.3%, using AED 331,500 of annual cash against AED 1,484,572 of capital. The difference is a mechanical result of the specified inputs. It is not evidence of the cash this type of business usually earns, and it should not be substituted for a verified business forecast.
Cleaning businesses acquisition guide · Explore businesses in this broader sector
Pest-control businesses — Customer collections
Operating driver: completed recurring visits per technician. Repeat schedules should be distinguished from one-off emergency jobs.
Evidence to prepare: service reports matched to recurring invoices.
Assumptions: asking price, entry costs and additional opening working capital are separate amounts. Base annual cash includes recurring costs, management, tax and maintenance unless the specific adjustment in this example states otherwise. For an actual business, reconcile that definition before calculating.
| Input or result | Illustrative amount |
|---|---|
| Asking price | AED 1,225,000 |
| Entry costs | AED 47,500 |
| Initial operating working capital | AED 125,000 |
| Base total initial capital | AED 1,397,500 |
| Base annual buyer cash flow | AED 345,000 |
| Modelled annual revenue | AED 2,875,000 |
| Extra collection time | 20 days on all modelled revenue |
| Additional cash tied up | AED 157,534 |
| Adjusted annual cash flow | AED 345,000 |
| Adjusted initial capital | AED 1,555,034 |
| Adjusted annual cash yield | 22.2% |
| Simple payback at constant adjusted cash | 4.51 years |
In this example the base annual cash yield is 24.7%. The adjusted result is 22.2%, using AED 345,000 of annual cash against AED 1,555,034 of capital. The difference is a mechanical result of the specified inputs. It is not evidence of the cash this type of business usually earns, and it should not be substituted for a verified business forecast.
Pest-control businesses acquisition guide · Explore businesses in this broader sector
HVAC maintenance businesses — Customer collections
Operating driver: profitable service visits and maintenance contracts. Annual maintenance fees must cover the full promised service period.
Evidence to prepare: work orders matched to labour and spare-parts invoices.
Assumptions: asking price, entry costs and additional opening working capital are separate amounts. Base annual cash includes recurring costs, management, tax and maintenance unless the specific adjustment in this example states otherwise. For an actual business, reconcile that definition before calculating.
| Input or result | Illustrative amount |
|---|---|
| Asking price | AED 1,282,500 |
| Entry costs | AED 49,250 |
| Initial operating working capital | AED 129,500 |
| Base total initial capital | AED 1,461,250 |
| Base annual buyer cash flow | AED 358,500 |
| Modelled annual revenue | AED 2,997,500 |
| Extra collection time | 20 days on all modelled revenue |
| Additional cash tied up | AED 164,247 |
| Adjusted annual cash flow | AED 358,500 |
| Adjusted initial capital | AED 1,625,497 |
| Adjusted annual cash yield | 22.1% |
| Simple payback at constant adjusted cash | 4.53 years |
In this example the base annual cash yield is 24.5%. The adjusted result is 22.1%, using AED 358,500 of annual cash against AED 1,625,497 of capital. The difference is a mechanical result of the specified inputs. It is not evidence of the cash this type of business usually earns, and it should not be substituted for a verified business forecast.
HVAC maintenance businesses acquisition guide · Explore businesses in this broader sector
Facilities management businesses — Customer collections
Operating driver: contract contribution after on-site staffing. Price each contract after site-level labour, supervisors and consumables.
Evidence to prepare: contract billing matched to site payroll and collections.
Assumptions: asking price, entry costs and additional opening working capital are separate amounts. Base annual cash includes recurring costs, management, tax and maintenance unless the specific adjustment in this example states otherwise. For an actual business, reconcile that definition before calculating.
| Input or result | Illustrative amount |
|---|---|
| Asking price | AED 1,340,000 |
| Entry costs | AED 51,000 |
| Initial operating working capital | AED 134,000 |
| Base total initial capital | AED 1,525,000 |
| Base annual buyer cash flow | AED 372,000 |
| Modelled annual revenue | AED 3,120,000 |
| Extra collection time | 20 days on all modelled revenue |
| Additional cash tied up | AED 170,959 |
| Adjusted annual cash flow | AED 372,000 |
| Adjusted initial capital | AED 1,695,959 |
| Adjusted annual cash yield | 21.9% |
| Simple payback at constant adjusted cash | 4.56 years |
In this example the base annual cash yield is 24.4%. The adjusted result is 21.9%, using AED 372,000 of annual cash against AED 1,695,959 of capital. The difference is a mechanical result of the specified inputs. It is not evidence of the cash this type of business usually earns, and it should not be substituted for a verified business forecast.
Facilities management businesses acquisition guide · Explore businesses in this broader sector
Car washes — Customer collections
Operating driver: paid washes per bay hour. Separate individual wash sales from prepaid membership use.
Evidence to prepare: wash tickets matched to membership redemptions and receipts.
Assumptions: asking price, entry costs and additional opening working capital are separate amounts. Base annual cash includes recurring costs, management, tax and maintenance unless the specific adjustment in this example states otherwise. For an actual business, reconcile that definition before calculating.
| Input or result | Illustrative amount |
|---|---|
| Asking price | AED 1,397,500 |
| Entry costs | AED 52,750 |
| Initial operating working capital | AED 138,500 |
| Base total initial capital | AED 1,588,750 |
| Base annual buyer cash flow | AED 385,500 |
| Modelled annual revenue | AED 3,242,500 |
| Extra collection time | 20 days on all modelled revenue |
| Additional cash tied up | AED 177,671 |
| Adjusted annual cash flow | AED 385,500 |
| Adjusted initial capital | AED 1,766,421 |
| Adjusted annual cash yield | 21.8% |
| Simple payback at constant adjusted cash | 4.58 years |
In this example the base annual cash yield is 24.3%. The adjusted result is 21.8%, using AED 385,500 of annual cash against AED 1,766,421 of capital. The difference is a mechanical result of the specified inputs. It is not evidence of the cash this type of business usually earns, and it should not be substituted for a verified business forecast.
Car washes acquisition guide · Explore businesses in this broader sector
Auto repair workshops — Customer collections
Operating driver: billed labour hours and parts contribution. Labour recovery rate is more useful than total vehicles entering the workshop.
Evidence to prepare: job cards matched to parts purchases and customer payments.
Assumptions: asking price, entry costs and additional opening working capital are separate amounts. Base annual cash includes recurring costs, management, tax and maintenance unless the specific adjustment in this example states otherwise. For an actual business, reconcile that definition before calculating.
| Input or result | Illustrative amount |
|---|---|
| Asking price | AED 1,455,000 |
| Entry costs | AED 54,500 |
| Initial operating working capital | AED 143,000 |
| Base total initial capital | AED 1,652,500 |
| Base annual buyer cash flow | AED 399,000 |
| Modelled annual revenue | AED 3,365,000 |
| Extra collection time | 20 days on all modelled revenue |
| Additional cash tied up | AED 184,384 |
| Adjusted annual cash flow | AED 399,000 |
| Adjusted initial capital | AED 1,836,884 |
| Adjusted annual cash yield | 21.7% |
| Simple payback at constant adjusted cash | 4.60 years |
In this example the base annual cash yield is 24.1%. The adjusted result is 21.7%, using AED 399,000 of annual cash against AED 1,836,884 of capital. The difference is a mechanical result of the specified inputs. It is not evidence of the cash this type of business usually earns, and it should not be substituted for a verified business forecast.
Auto repair workshops acquisition guide · Explore businesses in this broader sector
Car rental businesses — Customer collections
Operating driver: paid rental days per available vehicle. Utilisation should exclude vehicles unavailable through repair or registration issues.
Evidence to prepare: rental contracts matched to fleet and bank receipts.
Assumptions: asking price, entry costs and additional opening working capital are separate amounts. Base annual cash includes recurring costs, management, tax and maintenance unless the specific adjustment in this example states otherwise. For an actual business, reconcile that definition before calculating.
| Input or result | Illustrative amount |
|---|---|
| Asking price | AED 1,512,500 |
| Entry costs | AED 56,250 |
| Initial operating working capital | AED 147,500 |
| Base total initial capital | AED 1,716,250 |
| Base annual buyer cash flow | AED 412,500 |
| Modelled annual revenue | AED 3,487,500 |
| Extra collection time | 20 days on all modelled revenue |
| Additional cash tied up | AED 191,096 |
| Adjusted annual cash flow | AED 412,500 |
| Adjusted initial capital | AED 1,907,346 |
| Adjusted annual cash yield | 21.6% |
| Simple payback at constant adjusted cash | 4.62 years |
In this example the base annual cash yield is 24.0%. The adjusted result is 21.6%, using AED 412,500 of annual cash against AED 1,907,346 of capital. The difference is a mechanical result of the specified inputs. It is not evidence of the cash this type of business usually earns, and it should not be substituted for a verified business forecast.
Car rental businesses acquisition guide · Explore businesses in this broader sector
Logistics businesses — Customer collections
Operating driver: contribution per completed shipment. Pass-through freight revenue can make sales appear larger than economic contribution.
Evidence to prepare: shipment records matched to carrier costs and customer receipts.
Assumptions: asking price, entry costs and additional opening working capital are separate amounts. Base annual cash includes recurring costs, management, tax and maintenance unless the specific adjustment in this example states otherwise. For an actual business, reconcile that definition before calculating.
| Input or result | Illustrative amount |
|---|---|
| Asking price | AED 1,570,000 |
| Entry costs | AED 58,000 |
| Initial operating working capital | AED 152,000 |
| Base total initial capital | AED 1,780,000 |
| Base annual buyer cash flow | AED 426,000 |
| Modelled annual revenue | AED 3,610,000 |
| Extra collection time | 20 days on all modelled revenue |
| Additional cash tied up | AED 197,808 |
| Adjusted annual cash flow | AED 426,000 |
| Adjusted initial capital | AED 1,977,808 |
| Adjusted annual cash yield | 21.5% |
| Simple payback at constant adjusted cash | 4.64 years |
In this example the base annual cash yield is 23.9%. The adjusted result is 21.5%, using AED 426,000 of annual cash against AED 1,977,808 of capital. The difference is a mechanical result of the specified inputs. It is not evidence of the cash this type of business usually earns, and it should not be substituted for a verified business forecast.
Logistics businesses acquisition guide · Explore businesses in this broader sector
Courier businesses — Customer collections
Operating driver: successful paid deliveries per route. Failed deliveries and returns consume route capacity without equal revenue.
Evidence to prepare: delivery scans matched to billing and cash remittances.
Assumptions: asking price, entry costs and additional opening working capital are separate amounts. Base annual cash includes recurring costs, management, tax and maintenance unless the specific adjustment in this example states otherwise. For an actual business, reconcile that definition before calculating.
| Input or result | Illustrative amount |
|---|---|
| Asking price | AED 1,627,500 |
| Entry costs | AED 59,750 |
| Initial operating working capital | AED 156,500 |
| Base total initial capital | AED 1,843,750 |
| Base annual buyer cash flow | AED 439,500 |
| Modelled annual revenue | AED 3,732,500 |
| Extra collection time | 20 days on all modelled revenue |
| Additional cash tied up | AED 204,521 |
| Adjusted annual cash flow | AED 439,500 |
| Adjusted initial capital | AED 2,048,271 |
| Adjusted annual cash yield | 21.5% |
| Simple payback at constant adjusted cash | 4.66 years |
In this example the base annual cash yield is 23.8%. The adjusted result is 21.5%, using AED 439,500 of annual cash against AED 2,048,271 of capital. The difference is a mechanical result of the specified inputs. It is not evidence of the cash this type of business usually earns, and it should not be substituted for a verified business forecast.
Courier businesses acquisition guide · Explore businesses in this broader sector
Warehousing businesses — Customer collections
Operating driver: billable storage and handling utilisation. Storage utilisation alone ignores handling labour and seasonal peaks.
Evidence to prepare: warehouse movement records matched to customer invoices.
Assumptions: asking price, entry costs and additional opening working capital are separate amounts. Base annual cash includes recurring costs, management, tax and maintenance unless the specific adjustment in this example states otherwise. For an actual business, reconcile that definition before calculating.
| Input or result | Illustrative amount |
|---|---|
| Asking price | AED 1,685,000 |
| Entry costs | AED 61,500 |
| Initial operating working capital | AED 161,000 |
| Base total initial capital | AED 1,907,500 |
| Base annual buyer cash flow | AED 453,000 |
| Modelled annual revenue | AED 3,855,000 |
| Extra collection time | 20 days on all modelled revenue |
| Additional cash tied up | AED 211,233 |
| Adjusted annual cash flow | AED 453,000 |
| Adjusted initial capital | AED 2,118,733 |
| Adjusted annual cash yield | 21.4% |
| Simple payback at constant adjusted cash | 4.68 years |
In this example the base annual cash yield is 23.7%. The adjusted result is 21.4%, using AED 453,000 of annual cash against AED 2,118,733 of capital. The difference is a mechanical result of the specified inputs. It is not evidence of the cash this type of business usually earns, and it should not be substituted for a verified business forecast.
Warehousing businesses acquisition guide · Explore businesses in this broader sector
Freight forwarding businesses — Customer collections
Operating driver: gross profit per completed consignment. Compare net forwarding margin rather than total freight billed.
Evidence to prepare: files matched to agent invoices and customer collections.
Assumptions: asking price, entry costs and additional opening working capital are separate amounts. Base annual cash includes recurring costs, management, tax and maintenance unless the specific adjustment in this example states otherwise. For an actual business, reconcile that definition before calculating.
| Input or result | Illustrative amount |
|---|---|
| Asking price | AED 1,742,500 |
| Entry costs | AED 63,250 |
| Initial operating working capital | AED 165,500 |
| Base total initial capital | AED 1,971,250 |
| Base annual buyer cash flow | AED 466,500 |
| Modelled annual revenue | AED 3,977,500 |
| Extra collection time | 20 days on all modelled revenue |
| Additional cash tied up | AED 217,945 |
| Adjusted annual cash flow | AED 466,500 |
| Adjusted initial capital | AED 2,189,195 |
| Adjusted annual cash yield | 21.3% |
| Simple payback at constant adjusted cash | 4.69 years |
In this example the base annual cash yield is 23.7%. The adjusted result is 21.3%, using AED 466,500 of annual cash against AED 2,189,195 of capital. The difference is a mechanical result of the specified inputs. It is not evidence of the cash this type of business usually earns, and it should not be substituted for a verified business forecast.
Freight forwarding businesses acquisition guide · Explore businesses in this broader sector
E-commerce businesses — Customer collections
Operating driver: contribution per delivered order after returns. Advertising efficiency should be assessed after returns and fulfilment costs.
Evidence to prepare: store orders reconciled to payment processors and fulfilment.
Assumptions: asking price, entry costs and additional opening working capital are separate amounts. Base annual cash includes recurring costs, management, tax and maintenance unless the specific adjustment in this example states otherwise. For an actual business, reconcile that definition before calculating.
| Input or result | Illustrative amount |
|---|---|
| Asking price | AED 1,800,000 |
| Entry costs | AED 65,000 |
| Initial operating working capital | AED 170,000 |
| Base total initial capital | AED 2,035,000 |
| Base annual buyer cash flow | AED 480,000 |
| Modelled annual revenue | AED 4,100,000 |
| Extra collection time | 20 days on all modelled revenue |
| Additional cash tied up | AED 224,658 |
| Adjusted annual cash flow | AED 480,000 |
| Adjusted initial capital | AED 2,259,658 |
| Adjusted annual cash yield | 21.2% |
| Simple payback at constant adjusted cash | 4.71 years |
In this example the base annual cash yield is 23.6%. The adjusted result is 21.2%, using AED 480,000 of annual cash against AED 2,259,658 of capital. The difference is a mechanical result of the specified inputs. It is not evidence of the cash this type of business usually earns, and it should not be substituted for a verified business forecast.
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Fashion retailers — Customer collections
Operating driver: full-price sell-through and gross margin. Opening stock should be valued with age and expected markdowns in mind.
Evidence to prepare: SKU sales matched to purchases and stock counts.
Assumptions: asking price, entry costs and additional opening working capital are separate amounts. Base annual cash includes recurring costs, management, tax and maintenance unless the specific adjustment in this example states otherwise. For an actual business, reconcile that definition before calculating.
| Input or result | Illustrative amount |
|---|---|
| Asking price | AED 1,857,500 |
| Entry costs | AED 66,750 |
| Initial operating working capital | AED 174,500 |
| Base total initial capital | AED 2,098,750 |
| Base annual buyer cash flow | AED 493,500 |
| Modelled annual revenue | AED 4,222,500 |
| Extra collection time | 20 days on all modelled revenue |
| Additional cash tied up | AED 231,370 |
| Adjusted annual cash flow | AED 493,500 |
| Adjusted initial capital | AED 2,330,120 |
| Adjusted annual cash yield | 21.2% |
| Simple payback at constant adjusted cash | 4.72 years |
In this example the base annual cash yield is 23.5%. The adjusted result is 21.2%, using AED 493,500 of annual cash against AED 2,330,120 of capital. The difference is a mechanical result of the specified inputs. It is not evidence of the cash this type of business usually earns, and it should not be substituted for a verified business forecast.
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Convenience stores — Customer collections
Operating driver: gross profit per basket and stock turn. High turnover can coexist with a narrow contribution after shrinkage.
Evidence to prepare: till totals matched to supplier invoices and stock counts.
Assumptions: asking price, entry costs and additional opening working capital are separate amounts. Base annual cash includes recurring costs, management, tax and maintenance unless the specific adjustment in this example states otherwise. For an actual business, reconcile that definition before calculating.
| Input or result | Illustrative amount |
|---|---|
| Asking price | AED 1,915,000 |
| Entry costs | AED 68,500 |
| Initial operating working capital | AED 179,000 |
| Base total initial capital | AED 2,162,500 |
| Base annual buyer cash flow | AED 507,000 |
| Modelled annual revenue | AED 4,345,000 |
| Extra collection time | 20 days on all modelled revenue |
| Additional cash tied up | AED 238,082 |
| Adjusted annual cash flow | AED 507,000 |
| Adjusted initial capital | AED 2,400,582 |
| Adjusted annual cash yield | 21.1% |
| Simple payback at constant adjusted cash | 4.73 years |
In this example the base annual cash yield is 23.4%. The adjusted result is 21.1%, using AED 507,000 of annual cash against AED 2,400,582 of capital. The difference is a mechanical result of the specified inputs. It is not evidence of the cash this type of business usually earns, and it should not be substituted for a verified business forecast.
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Pet retail and grooming businesses — Customer collections
Operating driver: repeat product baskets and grooming bookings. Product sales and grooming services have different labour and inventory needs.
Evidence to prepare: till and booking records matched to supplier purchases.
Assumptions: asking price, entry costs and additional opening working capital are separate amounts. Base annual cash includes recurring costs, management, tax and maintenance unless the specific adjustment in this example states otherwise. For an actual business, reconcile that definition before calculating.
| Input or result | Illustrative amount |
|---|---|
| Asking price | AED 1,972,500 |
| Entry costs | AED 70,250 |
| Initial operating working capital | AED 183,500 |
| Base total initial capital | AED 2,226,250 |
| Base annual buyer cash flow | AED 520,500 |
| Modelled annual revenue | AED 4,467,500 |
| Extra collection time | 20 days on all modelled revenue |
| Additional cash tied up | AED 244,795 |
| Adjusted annual cash flow | AED 520,500 |
| Adjusted initial capital | AED 2,471,045 |
| Adjusted annual cash yield | 21.1% |
| Simple payback at constant adjusted cash | 4.75 years |
In this example the base annual cash yield is 23.4%. The adjusted result is 21.1%, using AED 520,500 of annual cash against AED 2,471,045 of capital. The difference is a mechanical result of the specified inputs. It is not evidence of the cash this type of business usually earns, and it should not be substituted for a verified business forecast.
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Furniture retailers — Customer collections
Operating driver: delivered orders after fulfilment costs. Customer deposits may fund furniture that has not yet been delivered.
Evidence to prepare: order book matched to supplier deposits and delivered sales.
Assumptions: asking price, entry costs and additional opening working capital are separate amounts. Base annual cash includes recurring costs, management, tax and maintenance unless the specific adjustment in this example states otherwise. For an actual business, reconcile that definition before calculating.
| Input or result | Illustrative amount |
|---|---|
| Asking price | AED 2,030,000 |
| Entry costs | AED 72,000 |
| Initial operating working capital | AED 188,000 |
| Base total initial capital | AED 2,290,000 |
| Base annual buyer cash flow | AED 534,000 |
| Modelled annual revenue | AED 4,590,000 |
| Extra collection time | 20 days on all modelled revenue |
| Additional cash tied up | AED 251,507 |
| Adjusted annual cash flow | AED 534,000 |
| Adjusted initial capital | AED 2,541,507 |
| Adjusted annual cash yield | 21.0% |
| Simple payback at constant adjusted cash | 4.76 years |
In this example the base annual cash yield is 23.3%. The adjusted result is 21.0%, using AED 534,000 of annual cash against AED 2,541,507 of capital. The difference is a mechanical result of the specified inputs. It is not evidence of the cash this type of business usually earns, and it should not be substituted for a verified business forecast.
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Dental and medical clinics — Customer collections
Operating driver: collected contribution per clinician session. Revenue should be separated by clinician, procedure and payer.
Evidence to prepare: clinical billing matched to collections and payer deductions.
Assumptions: asking price, entry costs and additional opening working capital are separate amounts. Base annual cash includes recurring costs, management, tax and maintenance unless the specific adjustment in this example states otherwise. For an actual business, reconcile that definition before calculating.
| Input or result | Illustrative amount |
|---|---|
| Asking price | AED 2,087,500 |
| Entry costs | AED 73,750 |
| Initial operating working capital | AED 192,500 |
| Base total initial capital | AED 2,353,750 |
| Base annual buyer cash flow | AED 547,500 |
| Modelled annual revenue | AED 4,712,500 |
| Extra collection time | 20 days on all modelled revenue |
| Additional cash tied up | AED 258,219 |
| Adjusted annual cash flow | AED 547,500 |
| Adjusted initial capital | AED 2,611,969 |
| Adjusted annual cash yield | 21.0% |
| Simple payback at constant adjusted cash | 4.77 years |
In this example the base annual cash yield is 23.3%. The adjusted result is 21.0%, using AED 547,500 of annual cash against AED 2,611,969 of capital. The difference is a mechanical result of the specified inputs. It is not evidence of the cash this type of business usually earns, and it should not be substituted for a verified business forecast.
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Physiotherapy practices — Customer collections
Operating driver: attended paid sessions per therapist hour. Treatment packages require a reconciliation between cash received and sessions owed.
Evidence to prepare: appointment records matched to payer or patient collections.
Assumptions: asking price, entry costs and additional opening working capital are separate amounts. Base annual cash includes recurring costs, management, tax and maintenance unless the specific adjustment in this example states otherwise. For an actual business, reconcile that definition before calculating.
| Input or result | Illustrative amount |
|---|---|
| Asking price | AED 2,145,000 |
| Entry costs | AED 75,500 |
| Initial operating working capital | AED 197,000 |
| Base total initial capital | AED 2,417,500 |
| Base annual buyer cash flow | AED 561,000 |
| Modelled annual revenue | AED 4,835,000 |
| Extra collection time | 20 days on all modelled revenue |
| Additional cash tied up | AED 264,932 |
| Adjusted annual cash flow | AED 561,000 |
| Adjusted initial capital | AED 2,682,432 |
| Adjusted annual cash yield | 20.9% |
| Simple payback at constant adjusted cash | 4.78 years |
In this example the base annual cash yield is 23.2%. The adjusted result is 20.9%, using AED 561,000 of annual cash against AED 2,682,432 of capital. The difference is a mechanical result of the specified inputs. It is not evidence of the cash this type of business usually earns, and it should not be substituted for a verified business forecast.
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Gyms — Customer collections
Operating driver: retained paying members and attended sessions. Annual membership cash should not be treated as fully earned at receipt.
Evidence to prepare: membership billing matched to cancellations and receipts.
Assumptions: asking price, entry costs and additional opening working capital are separate amounts. Base annual cash includes recurring costs, management, tax and maintenance unless the specific adjustment in this example states otherwise. For an actual business, reconcile that definition before calculating.
| Input or result | Illustrative amount |
|---|---|
| Asking price | AED 2,202,500 |
| Entry costs | AED 77,250 |
| Initial operating working capital | AED 201,500 |
| Base total initial capital | AED 2,481,250 |
| Base annual buyer cash flow | AED 574,500 |
| Modelled annual revenue | AED 4,957,500 |
| Extra collection time | 20 days on all modelled revenue |
| Additional cash tied up | AED 271,644 |
| Adjusted annual cash flow | AED 574,500 |
| Adjusted initial capital | AED 2,752,894 |
| Adjusted annual cash yield | 20.9% |
| Simple payback at constant adjusted cash | 4.79 years |
In this example the base annual cash yield is 23.2%. The adjusted result is 20.9%, using AED 574,500 of annual cash against AED 2,752,894 of capital. The difference is a mechanical result of the specified inputs. It is not evidence of the cash this type of business usually earns, and it should not be substituted for a verified business forecast.
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Pilates studios — Customer collections
Operating driver: paid occupied places per class. Class occupancy and instructor cost determine the contribution of each timetable slot.
Evidence to prepare: class bookings matched to package redemptions.
Assumptions: asking price, entry costs and additional opening working capital are separate amounts. Base annual cash includes recurring costs, management, tax and maintenance unless the specific adjustment in this example states otherwise. For an actual business, reconcile that definition before calculating.
| Input or result | Illustrative amount |
|---|---|
| Asking price | AED 2,260,000 |
| Entry costs | AED 79,000 |
| Initial operating working capital | AED 206,000 |
| Base total initial capital | AED 2,545,000 |
| Base annual buyer cash flow | AED 588,000 |
| Modelled annual revenue | AED 5,080,000 |
| Extra collection time | 20 days on all modelled revenue |
| Additional cash tied up | AED 278,356 |
| Adjusted annual cash flow | AED 588,000 |
| Adjusted initial capital | AED 2,823,356 |
| Adjusted annual cash yield | 20.8% |
| Simple payback at constant adjusted cash | 4.80 years |
In this example the base annual cash yield is 23.1%. The adjusted result is 20.8%, using AED 588,000 of annual cash against AED 2,823,356 of capital. The difference is a mechanical result of the specified inputs. It is not evidence of the cash this type of business usually earns, and it should not be substituted for a verified business forecast.
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Training centres — Customer collections
Operating driver: paid cohorts and completion contribution. A full enrolment pipeline is different from collected fees and delivered teaching.
Evidence to prepare: enrolment records matched to tuition receipts.
Assumptions: asking price, entry costs and additional opening working capital are separate amounts. Base annual cash includes recurring costs, management, tax and maintenance unless the specific adjustment in this example states otherwise. For an actual business, reconcile that definition before calculating.
| Input or result | Illustrative amount |
|---|---|
| Asking price | AED 2,317,500 |
| Entry costs | AED 80,750 |
| Initial operating working capital | AED 210,500 |
| Base total initial capital | AED 2,608,750 |
| Base annual buyer cash flow | AED 601,500 |
| Modelled annual revenue | AED 5,202,500 |
| Extra collection time | 20 days on all modelled revenue |
| Additional cash tied up | AED 285,068 |
| Adjusted annual cash flow | AED 601,500 |
| Adjusted initial capital | AED 2,893,818 |
| Adjusted annual cash yield | 20.8% |
| Simple payback at constant adjusted cash | 4.81 years |
In this example the base annual cash yield is 23.1%. The adjusted result is 20.8%, using AED 601,500 of annual cash against AED 2,893,818 of capital. The difference is a mechanical result of the specified inputs. It is not evidence of the cash this type of business usually earns, and it should not be substituted for a verified business forecast.
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Tutoring businesses — Customer collections
Operating driver: collected tuition per taught hour. Term seasonality can make one month's revenue a poor annual proxy.
Evidence to prepare: attendance records matched to fee collections.
Assumptions: asking price, entry costs and additional opening working capital are separate amounts. Base annual cash includes recurring costs, management, tax and maintenance unless the specific adjustment in this example states otherwise. For an actual business, reconcile that definition before calculating.
| Input or result | Illustrative amount |
|---|---|
| Asking price | AED 2,375,000 |
| Entry costs | AED 82,500 |
| Initial operating working capital | AED 215,000 |
| Base total initial capital | AED 2,672,500 |
| Base annual buyer cash flow | AED 615,000 |
| Modelled annual revenue | AED 5,325,000 |
| Extra collection time | 20 days on all modelled revenue |
| Additional cash tied up | AED 291,781 |
| Adjusted annual cash flow | AED 615,000 |
| Adjusted initial capital | AED 2,964,281 |
| Adjusted annual cash yield | 20.7% |
| Simple payback at constant adjusted cash | 4.82 years |
In this example the base annual cash yield is 23.0%. The adjusted result is 20.7%, using AED 615,000 of annual cash against AED 2,964,281 of capital. The difference is a mechanical result of the specified inputs. It is not evidence of the cash this type of business usually earns, and it should not be substituted for a verified business forecast.
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Nurseries — Customer collections
Operating driver: collected fees per occupied place. Capacity must be interpreted alongside staffing and approved operating conditions.
Evidence to prepare: enrolment and attendance matched to fee receipts.
Assumptions: asking price, entry costs and additional opening working capital are separate amounts. Base annual cash includes recurring costs, management, tax and maintenance unless the specific adjustment in this example states otherwise. For an actual business, reconcile that definition before calculating.
| Input or result | Illustrative amount |
|---|---|
| Asking price | AED 2,432,500 |
| Entry costs | AED 84,250 |
| Initial operating working capital | AED 219,500 |
| Base total initial capital | AED 2,736,250 |
| Base annual buyer cash flow | AED 628,500 |
| Modelled annual revenue | AED 5,447,500 |
| Extra collection time | 20 days on all modelled revenue |
| Additional cash tied up | AED 298,493 |
| Adjusted annual cash flow | AED 628,500 |
| Adjusted initial capital | AED 3,034,743 |
| Adjusted annual cash yield | 20.7% |
| Simple payback at constant adjusted cash | 4.83 years |
In this example the base annual cash yield is 23.0%. The adjusted result is 20.7%, using AED 628,500 of annual cash against AED 3,034,743 of capital. The difference is a mechanical result of the specified inputs. It is not evidence of the cash this type of business usually earns, and it should not be substituted for a verified business forecast.
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Software service businesses — Customer collections
Operating driver: recurring customer contribution after delivery. Recurring revenue should be adjusted for churn, support and custom work.
Evidence to prepare: billing records matched to contracts and hosting costs.
Assumptions: asking price, entry costs and additional opening working capital are separate amounts. Base annual cash includes recurring costs, management, tax and maintenance unless the specific adjustment in this example states otherwise. For an actual business, reconcile that definition before calculating.
| Input or result | Illustrative amount |
|---|---|
| Asking price | AED 2,490,000 |
| Entry costs | AED 86,000 |
| Initial operating working capital | AED 224,000 |
| Base total initial capital | AED 2,800,000 |
| Base annual buyer cash flow | AED 642,000 |
| Modelled annual revenue | AED 5,570,000 |
| Extra collection time | 20 days on all modelled revenue |
| Additional cash tied up | AED 305,205 |
| Adjusted annual cash flow | AED 642,000 |
| Adjusted initial capital | AED 3,105,205 |
| Adjusted annual cash yield | 20.7% |
| Simple payback at constant adjusted cash | 4.84 years |
In this example the base annual cash yield is 22.9%. The adjusted result is 20.7%, using AED 642,000 of annual cash against AED 3,105,205 of capital. The difference is a mechanical result of the specified inputs. It is not evidence of the cash this type of business usually earns, and it should not be substituted for a verified business forecast.
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IT support businesses — Customer collections
Operating driver: contract margin per supported customer. Unlimited support contracts can have very different labour intensity.
Evidence to prepare: service tickets matched to contracts and payroll.
Assumptions: asking price, entry costs and additional opening working capital are separate amounts. Base annual cash includes recurring costs, management, tax and maintenance unless the specific adjustment in this example states otherwise. For an actual business, reconcile that definition before calculating.
| Input or result | Illustrative amount |
|---|---|
| Asking price | AED 2,547,500 |
| Entry costs | AED 87,750 |
| Initial operating working capital | AED 228,500 |
| Base total initial capital | AED 2,863,750 |
| Base annual buyer cash flow | AED 655,500 |
| Modelled annual revenue | AED 5,692,500 |
| Extra collection time | 20 days on all modelled revenue |
| Additional cash tied up | AED 311,918 |
| Adjusted annual cash flow | AED 655,500 |
| Adjusted initial capital | AED 3,175,668 |
| Adjusted annual cash yield | 20.6% |
| Simple payback at constant adjusted cash | 4.84 years |
In this example the base annual cash yield is 22.9%. The adjusted result is 20.6%, using AED 655,500 of annual cash against AED 3,175,668 of capital. The difference is a mechanical result of the specified inputs. It is not evidence of the cash this type of business usually earns, and it should not be substituted for a verified business forecast.
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Marketing agencies — Customer collections
Operating driver: retained fee contribution after delivery labour. Client advertising spend passed through the agency should be separated from agency fees.
Evidence to prepare: retainer invoices matched to delivery payroll and collections.
Assumptions: asking price, entry costs and additional opening working capital are separate amounts. Base annual cash includes recurring costs, management, tax and maintenance unless the specific adjustment in this example states otherwise. For an actual business, reconcile that definition before calculating.
| Input or result | Illustrative amount |
|---|---|
| Asking price | AED 2,605,000 |
| Entry costs | AED 89,500 |
| Initial operating working capital | AED 233,000 |
| Base total initial capital | AED 2,927,500 |
| Base annual buyer cash flow | AED 669,000 |
| Modelled annual revenue | AED 5,815,000 |
| Extra collection time | 20 days on all modelled revenue |
| Additional cash tied up | AED 318,630 |
| Adjusted annual cash flow | AED 669,000 |
| Adjusted initial capital | AED 3,246,130 |
| Adjusted annual cash yield | 20.6% |
| Simple payback at constant adjusted cash | 4.85 years |
In this example the base annual cash yield is 22.9%. The adjusted result is 20.6%, using AED 669,000 of annual cash against AED 3,246,130 of capital. The difference is a mechanical result of the specified inputs. It is not evidence of the cash this type of business usually earns, and it should not be substituted for a verified business forecast.
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Accounting service practices — Customer collections
Operating driver: recurring fees after professional delivery time. Recurring engagements require sufficient qualified delivery capacity.
Evidence to prepare: engagement letters matched to billed work and collections.
Assumptions: asking price, entry costs and additional opening working capital are separate amounts. Base annual cash includes recurring costs, management, tax and maintenance unless the specific adjustment in this example states otherwise. For an actual business, reconcile that definition before calculating.
| Input or result | Illustrative amount |
|---|---|
| Asking price | AED 2,662,500 |
| Entry costs | AED 91,250 |
| Initial operating working capital | AED 237,500 |
| Base total initial capital | AED 2,991,250 |
| Base annual buyer cash flow | AED 682,500 |
| Modelled annual revenue | AED 5,937,500 |
| Extra collection time | 20 days on all modelled revenue |
| Additional cash tied up | AED 325,342 |
| Adjusted annual cash flow | AED 682,500 |
| Adjusted initial capital | AED 3,316,592 |
| Adjusted annual cash yield | 20.6% |
| Simple payback at constant adjusted cash | 4.86 years |
In this example the base annual cash yield is 22.8%. The adjusted result is 20.6%, using AED 682,500 of annual cash against AED 3,316,592 of capital. The difference is a mechanical result of the specified inputs. It is not evidence of the cash this type of business usually earns, and it should not be substituted for a verified business forecast.
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Printing businesses — Customer collections
Operating driver: job contribution after materials and setup. Setup waste and low-volume runs can distort an average gross margin.
Evidence to prepare: job costing matched to material usage and collections.
Assumptions: asking price, entry costs and additional opening working capital are separate amounts. Base annual cash includes recurring costs, management, tax and maintenance unless the specific adjustment in this example states otherwise. For an actual business, reconcile that definition before calculating.
| Input or result | Illustrative amount |
|---|---|
| Asking price | AED 2,720,000 |
| Entry costs | AED 93,000 |
| Initial operating working capital | AED 242,000 |
| Base total initial capital | AED 3,055,000 |
| Base annual buyer cash flow | AED 696,000 |
| Modelled annual revenue | AED 6,060,000 |
| Extra collection time | 20 days on all modelled revenue |
| Additional cash tied up | AED 332,055 |
| Adjusted annual cash flow | AED 696,000 |
| Adjusted initial capital | AED 3,387,055 |
| Adjusted annual cash yield | 20.5% |
| Simple payback at constant adjusted cash | 4.87 years |
In this example the base annual cash yield is 22.8%. The adjusted result is 20.5%, using AED 696,000 of annual cash against AED 3,387,055 of capital. The difference is a mechanical result of the specified inputs. It is not evidence of the cash this type of business usually earns, and it should not be substituted for a verified business forecast.
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Packaging manufacturers — Customer collections
Operating driver: saleable output after waste and changeovers. Unit economics vary with minimum run sizes and tooling changeovers.
Evidence to prepare: production runs matched to inputs, dispatch and invoices.
Assumptions: asking price, entry costs and additional opening working capital are separate amounts. Base annual cash includes recurring costs, management, tax and maintenance unless the specific adjustment in this example states otherwise. For an actual business, reconcile that definition before calculating.
| Input or result | Illustrative amount |
|---|---|
| Asking price | AED 2,777,500 |
| Entry costs | AED 94,750 |
| Initial operating working capital | AED 246,500 |
| Base total initial capital | AED 3,118,750 |
| Base annual buyer cash flow | AED 709,500 |
| Modelled annual revenue | AED 6,182,500 |
| Extra collection time | 20 days on all modelled revenue |
| Additional cash tied up | AED 338,767 |
| Adjusted annual cash flow | AED 709,500 |
| Adjusted initial capital | AED 3,457,517 |
| Adjusted annual cash yield | 20.5% |
| Simple payback at constant adjusted cash | 4.87 years |
In this example the base annual cash yield is 22.7%. The adjusted result is 20.5%, using AED 709,500 of annual cash against AED 3,457,517 of capital. The difference is a mechanical result of the specified inputs. It is not evidence of the cash this type of business usually earns, and it should not be substituted for a verified business forecast.
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Joinery workshops — Customer collections
Operating driver: completed project contribution after rework. Deposits on unfinished projects are linked to delivery obligations.
Evidence to prepare: project accounts matched to material purchases and certified billing.
Assumptions: asking price, entry costs and additional opening working capital are separate amounts. Base annual cash includes recurring costs, management, tax and maintenance unless the specific adjustment in this example states otherwise. For an actual business, reconcile that definition before calculating.
| Input or result | Illustrative amount |
|---|---|
| Asking price | AED 2,835,000 |
| Entry costs | AED 96,500 |
| Initial operating working capital | AED 251,000 |
| Base total initial capital | AED 3,182,500 |
| Base annual buyer cash flow | AED 723,000 |
| Modelled annual revenue | AED 6,305,000 |
| Extra collection time | 20 days on all modelled revenue |
| Additional cash tied up | AED 345,479 |
| Adjusted annual cash flow | AED 723,000 |
| Adjusted initial capital | AED 3,527,979 |
| Adjusted annual cash yield | 20.5% |
| Simple payback at constant adjusted cash | 4.88 years |
In this example the base annual cash yield is 22.7%. The adjusted result is 20.5%, using AED 723,000 of annual cash against AED 3,527,979 of capital. The difference is a mechanical result of the specified inputs. It is not evidence of the cash this type of business usually earns, and it should not be substituted for a verified business forecast.
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Holiday-home management businesses — Customer collections
Operating driver: management fee contribution per occupied unit. Property owner funds must be separated from the management company's revenue.
Evidence to prepare: owner statements matched to platform settlements and management fees.
Assumptions: asking price, entry costs and additional opening working capital are separate amounts. Base annual cash includes recurring costs, management, tax and maintenance unless the specific adjustment in this example states otherwise. For an actual business, reconcile that definition before calculating.
| Input or result | Illustrative amount |
|---|---|
| Asking price | AED 2,892,500 |
| Entry costs | AED 98,250 |
| Initial operating working capital | AED 255,500 |
| Base total initial capital | AED 3,246,250 |
| Base annual buyer cash flow | AED 736,500 |
| Modelled annual revenue | AED 6,427,500 |
| Extra collection time | 20 days on all modelled revenue |
| Additional cash tied up | AED 352,192 |
| Adjusted annual cash flow | AED 736,500 |
| Adjusted initial capital | AED 3,598,442 |
| Adjusted annual cash yield | 20.5% |
| Simple payback at constant adjusted cash | 4.89 years |
In this example the base annual cash yield is 22.7%. The adjusted result is 20.5%, using AED 736,500 of annual cash against AED 3,598,442 of capital. The difference is a mechanical result of the specified inputs. It is not evidence of the cash this type of business usually earns, and it should not be substituted for a verified business forecast.
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Buyers can explore current owner-authorised opportunities and share their acquisition criteria. Sellers can submit an anonymous summary and supporting financials for review. Identify the exact shares or assets, the financial period, what the asking price includes and the support available for a handover.
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Explore another method
- Business cash yield: compare price with annual buyer cash flow
- Business payback period: calculate the time to recover capital
- Owner salary: separate the job from the investment return
- Working capital: plan the funding needed after completion
- Equipment investment: plan maintenance and renewal
- Revenue planning: understand operating resilience
- Contribution margin: connect sales quality with buyer cash flow
- Business premises: model rent and lease assumptions
- Customer relationships: assess recurring contribution
- Business stock: agree quality, quantity and completion value
- Customer prepayments: allocate delivery commitments clearly
- Acquisition price: translate a target cash yield into a budget
- Business purchase costs: calculate the full entry commitment
- Minority business stakes: connect ownership with distributions
- Acquisition finance: separate business cash from equity cash
- Seasonal businesses: plan a monthly liquidity reserve
- Team continuity: budget recurring pay and transition costs
- Supplier pricing: connect purchasing terms with contribution
- Growth investment: evaluate contribution alongside new capital
- Earnings to cash: build a clear acquisition reconciliation
- Business handover: plan timing and transition funding
- Business exit value: separate operating cash and sale proceeds
- Business ownership and property: compare cash on the same basis
- Acquisition decision rules: match cash, reserves and objectives
Methodology: explicit scenario arithmetic and sector operating frameworks. ORDENNE is the publisher. Examples are educational and are not individual investment advice. Verify the financial evidence and transaction-specific requirements before committing.