⚠️ Red Flag Case Study: The “Family Garage” Fallacy

An auto shop was under contract at $850K based on $175K in cash flow.

But we found: ❌ 2 sons working full-time, unpaid
❌ Equipment over 15 years old—no CapEx budget
❌ Addbacks included gas, phone, and home office

Adjusted free cash flow? ~$65K
True value? ~$440K

✅ Lender restructured. ✅ Buyer avoided overpaying.