Stratos Performance Group SAMPLE-001

June 2, 2026

ClearPath Self Storage

Stratos Score

81 /100

ConfidenceModerate confidence

Prepared forSample Buyer

Asking$1,100,000

Earnings$195,000 (SDE)

Multiple5.64× earnings

Revenue$310,000

Margin62.9%

Price / revenue3.5×

FinancingSBA Loan

1 — Executive Summary

Absentee ownership with a part-time site manager already in place means the business runs without the buyer — there is no key-person cliff to manage at close.

Asking price of $1.1M at 5.6x SDE sits below the stated 6.0x–8.0x range for this asset class, giving the buyer a margin-of-safety entry on a stable, high-margin cash flow stream.

Four consecutive years of 88–92% occupancy with 94% recurring revenue and zero meaningful customer concentration is the kind of revenue quality that actually holds through ownership transitions.

2 — Deal Snapshot

Asking price

$1,100,000

Seller-reported — verification required · 5.64× seller earnings · SBA Loan

Revenue

$310,000

Seller-reported — verification required

Earnings

$195,000 (SDE)

62.9% margin — Seller-reported — verification required

Multiple

5.64×

On reported SDE

Margin

62.9%

Seller-reported — verification required

Financing

SBA Loan

Seller-reported — verification required

All figures are seller-reported and have not been independently verified. Stratos scoring reflects information available at intake. Confidence in this analysis will shift as diligence confirms or challenges key assumptions.

3 — How This Deal Works

The acquisition thesis

A self-storage facility that has run at near-full occupancy for four straight years with one part-time employee and no meaningful customer dependency — a buyer with operational experience acquires predictable cash flow at a below-range multiple with minimal transition risk.

GO IF

Proceed ONLY IF: the seller's add-back schedule is provided and verified add-backs represent a minority of reported SDE — confirming the $195K earnings figure as a reliable debt service base.

DO NOT PROCEED IF

Do NOT proceed IF: the add-back schedule reveals that adjusted, normalized SDE falls materially below the reported $195K — at that point the 5.6x entry price is no longer below range and the SBA debt service cushion compresses to an unacceptable level.

Occupancy held between 88% and 92% for four consecutive years per buyer-submitted context, indicating stable demand and pricing power at the unit level.
94% recurring revenue with top customer at 2% and top five at 7% — revenue concentration risk is structurally absent from this deal.
Asking price at 5.6x latest SDE is below the engine's 6.0x–8.0x heuristic range, providing entry-price cushion relative to asset class norms.

4 — Top Risks & Mitigation

Seller-Provided Financials — Add-Back Visibility

Why it matters

All financial data is seller-provided and no add-back schedule was submitted. If the $195K SDE includes material add-backs — owner perks, discretionary expenses, one-time items — the true normalized earnings could be meaningfully lower. At 5.6x, even a modest earnings haircut shifts the effective multiple above range and changes the debt service picture on an SBA structure. This is the single fact pattern that could flip a clean deal into an overpay.

What to ask the seller

Provide a complete add-back schedule showing every adjustment made to arrive at $195K SDE, including the dollar amount, description, and whether each item is recurring or one-time.

Upside Ceiling — Organic Growth Constraints

Why it matters

Occupancy has been locked in a narrow 88–92% band for four years. That stability is a revenue quality signal, but it also implies the facility is operating near its natural demand ceiling without a clear organic growth lever. A buyer expecting meaningful revenue expansion beyond inflation-driven rate increases will need to identify a specific mechanism — rate optimization, additional unit types, ancillary revenue — that is not evidenced in the submitted data. Paying for growth that the asset history does not support is a valuation discipline risk, not a deal-killer.

What to ask the seller

What is the current average monthly rate per unit by type, how does that compare to local competitors today, and has management tested any rate increases in the past two years?

5 — Valuation Reality

Implied multiple

5.6x

Expected range

6.0x – 8.0x

Position

Below range

Industry

Self Storage

Below range

The implied multiple appears below the typical heuristic range for this business type. That may indicate attractive pricing or embedded risk that still needs explanation.

This range is a directional pricing benchmark based on business type, earnings profile, and deal economics. Use it as a pricing sanity check rather than a formal valuation.

6 — Category Signals

The Stratos Score of 81/100 is derived from these four categories. Review them to understand where this deal is strongest and where the primary risks exist.

Reported Financial Consistency

Assesses whether the submitted financial information appears internally consistent and reasonable.

Low Risk

Personnel & dependencies

Highlights people-related risks that could affect business continuity after the owner exits.

Moderate Risk

Deal structure

Evaluates transaction terms and conditions that could create execution risk between LOI and close.

Low Risk

Revenue transferability

Assesses how likely the current revenue base is to remain with the business after ownership changes.

Low Risk

7 — What to Validate Next

1

Request and reconcile the full three-year rent roll — unit count, occupied units, unit mix, and average monthly rate — against reported revenue figures. If the rent roll math does not foot to reported revenue within a tight tolerance, the financials require independent reconstruction before LOI.
2

Obtain the complete SDE add-back schedule and verify each line item. Confirm whether owner compensation, vehicle expenses, or any personal items are included, and whether the part-time site manager's compensation is fully expensed in the reported earnings figure.
3

Confirm the existing lease term, renewal options, and any landlord consent requirements triggered by the ownership transfer — five-plus years of lease security was noted, but confirm the assignment or change-of-control clause does not require renegotiation at close.

8 — Your Next Move

Before LOI, pull three years of actual rent rolls and reconcile unit count, occupied units, and average rent per unit against the reported revenue figures — this single step confirms whether the occupancy and revenue trend are real or seller-assembled.

A typical SBA lender would likely question the absence of a documented add-back schedule on seller-provided financials and may request two to three years of tax returns to reconcile reported SDE before issuing a commitment letter. The deal earns a BUY because the structural foundation is genuinely strong — absentee operation, low owner dependence, near-zero concentration risk, improving trend, and a below-range entry price — and the primary remaining risk is a verification item, not a structural flaw. The add-back question is a gating item: if the rent roll and tax returns confirm the $195K SDE is clean, this is a well-priced acquisition of a stable cash-flowing asset. Confirm the add-back schedule and reconcile rent rolls to reported revenue before submitting LOI. If normalized earnings come in materially below $195K, the effective multiple rises above range and the deal requires a price renegotiation or should be abandoned.

Proceed if

Proceed ONLY IF: the seller's add-back schedule is provided and verified add-backs represent a minority of reported SDE — confirming the $195K earnings figure as a reliable debt service base.

Do not proceed if

Do NOT proceed IF: the add-back schedule reveals that adjusted, normalized SDE falls materially below the reported $195K — at that point the 5.6x entry price is no longer below range and the SBA debt service cushion compresses to an unacceptable level.