A small firm reported $160K in free cash flow and asked $900K.

But: ❌ Owner did all tax prep and client relationships
❌ No W-2 staff, no CRM, no formal retention system
❌ 75% of clients were friends/family/long-term loyalists
❌ Buyer was new to public accounting

After normalizing for owner compensation and personal goodwill risk, true value: ~$380K

✅ Deal restructured with seller earnout and transition plan.