A vet clinic was priced at $950K based on $245K in “cash flow.”

But: ❌ Owner was sole DVM—no associate or succession plan
❌ Addbacks included personal kennel, pet food, and family wages
❌ No CapEx normalization for aging X-ray and surgical gear
❌ Client loyalty was owner-driven—not brand-driven

✅ Adjusted FCF: ~$75K
✅ Revised value: ~$420K with owner labor and CapEx corrected

📌 Lender protected the deal by focusing on transferable practice value.