A tutoring business claimed $140K in “cash flow,” asking $350K (2.5x).

But: ❌ Owner taught 85% of classes
❌ “Marketing” addback
❌ 4-month summer lull unadjusted
❌ No replacement cost for part-time instructors

After seasonality and staffing normalization, true FCF: ~$58K
📉 Revised value: ~$145K

📌 Cash flow that disappears in July isn’t sustainable.

✅ Moral: Managing properties isn’t the same as owning a transferable business.