A roofing company was priced at $1.2M based on $315K in cash flow.

But: ❌ 40% of revenue came from one hurricane year
❌ Owner was only licensed roofer + ran bids and inspections
❌ Three trucks were leased personally—not in books
❌ No CapEx or payroll adjustment for labor shortages

✅ Adjusted cash flow: ~$75K
✅ Revised value: ~$585K

📌 Lender avoided financing the aftermath of a single weather event.