A private therapy practice was priced at $680K based on $185K in SDE.

But: ❌ Owner was the only licensed provider—no associates or admin staff
❌ 75% of revenue was insurance-based with 45+ day reimbursement lag
❌ Addbacks included meditation apps, wellness retreats, and personal mileage
❌ No systems for tracking sessions, client retention, or outcomes

✅ Adjusted FCF: ~$55K
✅ Revised value: ~$295K with labor and reimbursement normalization

📌 Lender realigned the deal to reflect professional + operational risk.