Michigan Business Acquisition Analysis - Don't Overpay for a Business

Thinking about buying a business in Michigan? Before you sign anything or wire money, get an independent financial analysis from experts who've saved clients millions from overpriced deals.

The Problem: Michigan Business Brokers Are Overvaluing Businesses by 3-7x Market Rates

You've found a business for sale. The numbers in the offering memorandum look solid. Revenue is strong. The broker says the EBITDA is "verified." The pro-forma shows growth. It seems like the perfect opportunity.

Here's what they're not telling you:

The valuation is inflated by 300-700% to maximize their commission. The margins are unrealistic. Critical expenses are missing. The cash flow projections are fantasy. And even if you get approved for financing, you'll be losing money from day one.

By the time you realize it, you've already closed - and you're headed for bankruptcy.

We've seen it happen dozens of times across Michigan. Detroit, Grand Rapids, Ann Arbor, Lansing - it doesn't matter. Business brokers use the same playbook everywhere: inflate the price, hide the problems, and pressure you to close before you can think clearly.

We stop this from happening.

What Makes LVRG Different: We're Lenders, Not Consultants

Most business acquisition advisors have never put their own money on the line. They'll charge you $10,000 for a valuation report and tell you what you want to hear.

We're different.

We're LVRG Business Funding - a Metro Detroit-based lender and M&A advisory firm. We don't just analyze deals. We finance them. We've facilitated millions in Michigan business acquisitions and growth capital across every major market in the state.

That means:

• We know exactly what Michigan banks and SBA lenders will actually approve

• We've seen the financial statements of hundreds of Michigan businesses (we know what real numbers look like vs. fabricated ones)

• We understand debt service coverage ratios, collateral requirements, and bankability inside and out

• We've worked with business brokers across Michigan - we know their tactics and their inflated valuations

• When we tell you a deal is overpriced, we're not guessing - we're telling you what we'd do with our own money

We're not trying to sell you on a bad deal. If the numbers don't work, we lose the financing opportunity. Our incentive is to tell you the truth, not collect a fee and disappear.

Our Michigan Business Acquisition Financial Analysis

Investment: $1,995
Timeline: 3-5 Business Days

Who This Is For:

✓ You're considering buying a business in Michigan
✓ You've received an offering memorandum from a business broker
✓ The numbers look good, but something feels off
✓ You want to know if the valuation is real or inflated
✓ You need to know if you can actually get financing
✓ You want independent verification before you commit

What You Get: Complete Financial Validation

Deep Dive Financial Analysis:

• Complete review of tax returns, P&L, balance sheet, debt schedules

• Valuation verification against actual Michigan market comparables (not broker fantasy numbers)

• Real cash flow modeling - what you'll actually make vs. what they're claiming

• Debt service coverage ratio (DSCR) calculation - will Michigan banks actually finance this deal?

• Industry margin benchmarking and competitive analysis

• Red flag identification: Missing expenses, unrealistic projections, fabricated numbers, deferred maintenance

Michigan Market & Risk Assessment:

• Local demographic and market trend analysis specific to the business location

• Revenue concentration risks (customer dependency analysis)

• Real estate valuation breakdown (property vs. business value)

• Capital expenditure reality check (what you'll actually need to spend)

• Competitive landscape assessment

Written Report & Recommendations:

• 10-15 page detailed financial analysis with clear recommendation

• "Go" or "No-Go" assessment with supporting data and calculations

• If the deal works: Michigan business loan financing feasibility and structure recommendations

• If it doesn't work: Exactly why it fails, what it's actually worth, and what you should offer instead

• Industry-specific insights and considerations

Direct Advisory Access:

• Initial consultation call to understand the opportunity and your goals

• Detailed review call to walk through our analysis and findings

• Follow-up calls as needed during negotiation and decision-making

• Email support throughout the process

Two Possible Outcomes - You Win Either Way

Outcome 1: Green Light ✓

The numbers are solid. The valuation is fair. The business can support the debt service. Michigan banks will finance it.

You move forward with confidence - and if you need Michigan business acquisition financing, we help arrange it through our SBA lenders and banking partners (at no additional cost for the introduction).

Outcome 2: Red Flag ✗

The valuation is inflated. The cash flow can't support the debt. The margins are unrealistic. The deal would be a financial disaster.

We show you exactly why - with detailed analysis, comparable sales data, and cash flow projections. We tell you what the business is actually worth and what a fair offer would look like.

We save you from bankruptcy.

Either way, you make an informed decision based on facts, not broker promises.

Real Michigan Case Study: Westland Car Wash

A Michigan business buyer came to us ready to purchase a car wash and oil change facility in Westland for $2.8 million. A local Michigan business broker provided the offering memorandum. The financials looked solid:

• 20+ years in business

• $692,657 in annual revenue

• $274,466 in claimed EBITDA

• "Strong recurring revenue from fleet contracts"

• High-traffic location near I-275

It looked like a safe acquisition.

What Our Analysis Revealed:

❌ Valuation was inflated 3-4x market rates

• Broker priced it at 10.2x EBITDA

• Single-location car wash/quick-lube facilities trade at 3-4x EBITDA in Michigan

• Fair market value: $700K-$900K (not $2.8M)

❌ The cash flow was completely fabricated

• Zero owner salary shown (would need $60K-$80K for manager)

• Claimed 39.6% EBITDA margin (industry average is 20-25%)

• 2025 pro-forma showed expenses decreasing as revenue increased (impossible)

• Repairs & maintenance: $3,012/year for a 23-year-old building with hydraulic lifts (unrealistic)

❌ The deal was unfinanceable

• Debt service coverage ratio: 0.70 (Michigan banks require 1.15-1.25 minimum)

• Annual debt service: $391,298

• Actual EBITDA (adjusted): ~$200,000

• The debt service alone exceeded the entire EBITDA by $116,000

❌ The cash flow reality
At $2.8M purchase price: Negative $169,500/year cash flow
Even with optimistic projections: Negative $118,000/year

The Result:

We saved this client over $2 million in overpayment and prevented certain financial catastrophe.

At a fair price of $700K-$900K, the same business becomes viable with positive cash flow and acceptable returns. The difference between a good deal and bankruptcy is often just the purchase price.

The business broker wasn't happy with us. Our client was.

How the Process Works

Step 1: Schedule Your Consultation Call

Tell us about the Michigan business opportunity you're considering. We'll discuss your goals, timeline, and what documents we need.

Step 2: Submit Financial Documents

Send us the offering memorandum, tax returns, P&L statements, balance sheets - we'll provide a complete checklist of everything required.

Step 3: We Analyze Everything

Our team performs a comprehensive financial validation and risk assessment. We dig into the tax returns, verify the numbers, check market comps, and calculate the real cash flow.

Step 4: Receive Your Detailed Report

Within 3-5 business days, you receive a complete 10-15 page written analysis with our findings and clear recommendation.

Step 5: Review Call & Ongoing Support

We walk you through the analysis, answer all your questions, and provide ongoing advisory support as you make your decision.

Serving Michigan Business Buyers Statewide

Based in Metro Detroit, we serve business buyers throughout Michigan - from Southeast Michigan to West Michigan and everywhere in between. We've analyzed acquisition opportunities in:

• Metro Detroit (Detroit, Dearborn, Livonia, Southfield, Troy, Warren)

• Ann Arbor & Washtenaw County

• Grand Rapids & West Michigan

• Lansing & Mid-Michigan

• Flint, Saginaw, Bay City

• Kalamazoo & Southwest Michigan

We understand Michigan's regional economic dynamics, local market conditions, and what Michigan SBA lenders and commercial banks actually require for business acquisition financing.

We also work with clients nationwide - if you're located outside Michigan but considering a business acquisition anywhere in the country, we can help.

Why Michigan Business Buyers Choose LVRG

We've Been Where You Are

We're not ivory tower consultants. We're business owners and lenders who've been on both sides of acquisitions. We know what it's like to analyze a deal, negotiate with brokers, secure financing, and live with the consequences of the decision.

We Have Skin in the Game

When we facilitate Michigan business acquisition financing, we're putting our banking relationships and reputation on the line. We only recommend deals we'd be comfortable financing ourselves.

We've Saved Clients Seven Figures

We've stopped clients from overpaying by $500K, $1M, $2M+ on overpriced deals. We've identified missing expenses, inflated margins, revenue concentration risks, and environmental liabilities that brokers conveniently forgot to mention.

We Know Michigan Business Brokers

We've worked across the Michigan market long enough to know which brokers provide realistic valuations and which ones inflate prices 3-7x. We know their tactics. We know their tricks. We call out their bullshit.

We Speak Bank Language

We know exactly what Michigan banks and SBA lenders require:

• Debt service coverage ratios

• Collateral analysis

• Personal financial requirements

• Business valuation support

• Industry risk factors

If we tell you a deal won't get financed, it's because we know the underwriting standards inside and out.

What You're Really Buying

You're not just buying a report. You're buying:

✓ Protection from a $500K-$2M+ mistake
✓ Clarity on whether the deal is real or inflated
✓ Confidence to move forward or walk away
✓ Negotiating leverage (armed with real comps and analysis)
✓ Financing roadmap if the numbers work
✓ Peace of mind that you're making an informed decision

For $1,995, you get the truth - whether it's what you want to hear or not.

Common Questions

"Can't I just trust the broker's numbers?"
No. Business brokers are paid on commission - the higher the sale price, the more they make. Their incentive is to maximize price, not give you accurate information.

"What if the seller won't provide tax returns?"
Walk away. Any legitimate seller will provide 3 years of business and property tax returns. If they won't, there's something they're hiding.

"How do I know your analysis is accurate?"
We show our work. Every calculation, every assumption, every comparable sale. You'll see exactly how we arrived at our conclusions. If you disagree with our methodology, we'll discuss it.

"What if I've already signed an LOI?"
We can still help. Most LOIs have inspection and financing contingencies. Our analysis can help you renegotiate price or exit the deal if needed.

"Do you only work with businesses for sale through brokers?"
No. We analyze any business acquisition - broker deals, direct seller deals, family business transitions, partner buyouts, etc.

The Bottom Line

You're about to spend hundreds of thousands - possibly millions of dollars - on a Michigan business acquisition.

Spending $1,995 to know if the deal is real or a financial disaster isn't optional.

It's the smartest investment you'll make.

You'll either:

• Move forward with confidence on a solid deal (and we'll help arrange Michigan business financing)

• Walk away from a disaster that would have cost you everything

Either way, you win.

Ready to Get Started?

Don't sign an LOI. Don't wire earnest money. Don't commit to anything until you've had an independent financial analysis.

Schedule your consultation call today.

Contact Us: (855) 998-5874 or Email: info@lvrgfunding.com

LVRG Business Funding
Michigan Business Acquisition Financing & Advisory
Serving Business Buyers Throughout Michigan & Nationwide
Metro Detroit | Ann Arbor | Grand Rapids | Lansing