Jon Lynch Financial

Business Cash-Out Calculator

Model your exit. Plug in your valuation, asking price, and preferred deal structure — see cash at closing, earnout schedule, and seller-note payout. Built for SMB sales under $10M.

Your deal

Click a structure below to load typical splits, or enter your own.

All cash

100/0/0 — strategic buyer, premium price often lower

60 / 30 / 10

Cash / earnout / seller note — most common SMB deal

50 / 40 / 10

Heavier earnout — buyer wants performance proof

40 / 30 / 30

Light cash — fastest close, biggest tail risk for you

Your proceeds

Cash at closing
— of price
Earnout (total)
~$— / yr
Seller note (face)
monthly payment: $—
Note interest total
total received over term: $—
Asking vs. valuation
premium over fair value
Total nominal proceeds
cash + full earnout + full note + interest

Earnouts depend on the business hitting agreed milestones (revenue, EBITDA, customer retention) — they are not guaranteed. Industry data suggests 30–40% of SMB earnouts are partially missed. Seller notes are subordinated to senior bank debt and depend on the buyer's post-close cash flow. The cash percentage is the only number you can really count on at closing.

When this makes sense — and when it doesn't

When it makes sense

  • You're selling a business under $10M and the buyer is another SMB or a search-fund / individual buyer.
  • You're confident the business will hit its targets and you're willing to share that upside with the buyer (earnouts can lift your total price 15–25%).
  • You want to stay involved in the transition (1–3 years is typical for a seller-financed deal).
  • Strategic / PE buyers are scarce in your niche, and these typical SMB structures are realistic.

When it doesn't

  • You need 100% cash at close for tax, retirement, or health reasons — push for a cleaner all-cash deal even at a discount.
  • You don't trust the buyer's ability to operate the business — both earnouts and seller notes assume the business survives.
  • The buyer is loading the deal with contingent compensation just to make their price look bigger. A 30% cash / 70% contingent offer at $3M is rarely better than a 80% cash deal at $2.4M.
  • You haven't modeled the tax hit — installment treatment (IRS §453) saves real money on earnouts and notes; cash gets taxed all in year one.

Quick reference. Industry-typical SMB deal structures cluster around 50–70% cash at close, 20–40% earnout over 2–4 years, and a 5–15% seller note at 6–8% over 3–7 years. Anything well outside that band deserves scrutiny.

Which path fits you?

This tool helps three audiences. Pick the one that's you.

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