A body shop claimed $265K in SDE and priced the business at $995K.

But: ❌ 72% of work came from one DRP insurance contract
❌ Frame machine and paint booth overdue for replacement
❌ Owner + brother = unpaid labor
❌ Payroll was 60% of norm for revenue level

Adjusted FCF: ~$115K
Revised value: ~$675K

📌 Lender and appraiser caught it before the deal broke down completely.