18-machine store, tertiary market
§ 01 · Observed
What was documented in diligence.
No card system; revenue presented from seller-prepared turn counts. Bank deposits exceeded reported revenue by 18% — direction unusual; cash deposits unverifiable. Machines averaged 11 years with patchy service records. Utility share 33% of revenue indicating equipment past efficiency threshold. Lease 6 years remaining with one 5-year option (10y total — below SBA cliff for 10y term).
§ 02 · Outcome
What happened.
Buyer signed LOI at 3.1× SDE. SBA lender required additional verification. Unverifiable revenue did not clear underwriting. Financing fell through; deal terminated.
§ 03 · Structural Pattern
How this deal fits the four-pillar framework.
Lower-band conditions present on three of four pillars (Earnings Quality, Pricing, Fundability) but multiple paid was at mid-band level. Multiple paid > structural condition envelope is the most common pattern in financing fall-through cases.
This is an anonymized composite drawn from observable structural patterns in the sample window. It is not a specific deal. The structural pattern, band placement, and outcome reflect commonly observed combinations; a future consented case study will replace this entry.
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