A center priced at $725K claimed $185K in cash flow.

But: ❌ Owner taught, ran the office, and handled enrollments
❌ Facility at capacity—but underlicensed
❌ No employee handbook, SOPs, or backup staff
❌ Addbacks included child snacks, family wages, and lease perks

Adjusted FCF: ~$75K
True value: ~$410K with seller support + licensing review

📌 Lenders saved the deal—but not without cleaning up the crayons.