A broker priced a grocery store at $950K based on $215K in cash flow. But:

❌ Owner worked 60+ hours/week
❌ Two adult children worked unpaid
❌ Margins inflated by underreported COGS and no shrinkage

Adjusted free cash flow used in the business valuation: ~$90K
Fair market value: ~$525K

📌 Lender caught it before closing. That’s how you prevent over-financing perishables.