A home care provider was priced at $950K based on $140K in cash flow.

But: ❌ Owner was a full-time caregiver
❌ No W-2 staff—just part-time 1099s
❌ No formalized client contracts
❌ High goodwill assigned to owner-driven reputation

Adjusted free cash flow: ~$60K
Revised value: ~$465K with seller support for transition

📌 Lender avoided over-financing.