A yoga studio priced at $510K claimed $135K in SDE.

But: ❌ Owner taught 75% of classes and ran operations solo
❌ No instructor contracts or backup leadership
❌ Addbacks included massage chair, home studio use, and coaching retreats
❌ No normalization for seasonal drop-off or promo-driven spikes

✅ Adjusted FCF: ~$40K
✅ Revised value: ~$225K after labor normalization

📌 Lender kept the deal in balance by aligning cash flow with reality.