Ownership workspace
Evaluate partnership and ASC economics
A buy-in arrives as one sentence that hides every variable deciding whether it is a good trade. Enter the terms and get an explicit cash-flow series: payback, net present value, internal rate of return, break-even volume, exit value, the cost of leaving early, and what the whole thing actually depends on.
Volume scenario
Each scenario is a named set of assumptions, printed below. Ownership economics move more with volume than with the buy-in price.
Volume and distributions perform exactly as entered.
The stake
What you are buying, and what it costs to get in.
Capped at the buy-in amount.
A personal guarantee puts household assets behind facility debt, and usually survives your departure unless expressly released.
Distributions
Where the return actually comes from. Enter history if you have it; a forward number alone cannot be checked.
Deriving them is the only way to test whether the number is sustainable at the volume assumed.
Your share, not the facility total.
Nothing analyzed yet
Enter a buy-in amount and a distribution basis and the cash-flow analysis appears here.
- Buy-in amount, ownership percentage, and either an expected distribution or the facility economics behind it.
- Then the exit formula. It is the least certain part of any buy-in and frequently decides whether the deal works.
- Historical distributions last. Without them, a forward estimate cannot be checked against anything, and this model will say so rather than pretending otherwise.
Every figure here is a modeled estimate from a cash-flow model built on figures you entered. It is not a valuation, not tax advice, and not a legal opinion, and it does not imply that any document has been reviewed. Owner distributions are not guaranteed income. Before contributing capital, have an attorney read the operating agreement, an accountant confirm the tax characterization, and a valuation professional test the buy-in price.
Common questions
Why does the tool refuse to call a deal good or bad?
Because the useful output is not a verdict, it is knowing which assumption the deal rests on. A buy-in that is attractive only if distributions hold and only if the redemption formula pays out is a different proposition from one that survives a shortfall. The classification names the dependency so you can go and verify it.
What do the classifications mean?
Attractive under entered assumptions means the net present value is positive at your own discount rate and survives a 20 percent distribution shortfall. Highly dependent on distributions means a 20 percent shortfall turns the return negative. High exit-risk exposure means the return depends on recovering equity when you leave. Insufficient information means a buy-in amount and a distribution basis have not both been entered. Requires professional review means the terms include something a model cannot resolve, such as a personal guarantee or no defined buy-out.
How are distributions taxed in the model?
As the top slice of income stacked on your other earnings, with self-employment treatment, rather than at an average rate. A $90,000 distribution on top of a $400,000 salary is not taxed at an average rate, and modeling it that way would understate the tax materially. Entity structure changes this and is a question for an accountant.
Why can the internal rate of return come back as not meaningful?
Because some cash-flow shapes genuinely have no single rate of return, and others have several. The implementation brackets and bisects rather than iterating freely, and reports nothing when it cannot find a defensible root. A null result is honest; a fabricated percentage is not.
Why does it keep asking for historical distributions?
Because a forward estimate with no history behind it cannot be checked against anything. Three to five years of actual distributions per unit let the model flag volatility and tell you when the projection sits above what the facility has actually paid.
Is this a valuation?
No. It is a cash-flow model built from figures you enter. It does not value a facility, does not review any document, and is not tax or legal advice. Before contributing capital, have an attorney read the operating agreement, an accountant confirm the tax characterization, and a valuation professional test the buy-in price.