A $750K restaurant valuation relied on “owner’s discretionary cash flow” of $185K.

But:

• $45K = family payroll not expensed
• $18K = underreported delivery fees
• $22K = ‘miscellaneous’ addbacks with no backup
• $35K = no market salary for the full-time owner

Real FCF: ~$65K
Real value: closer to $275K

📉 The lender caught it in time and avoided a big hit.

📌 Don’t let weak adjustments mask the heat in the kitchen.