A machine shop priced at $1M based on $250K EBITDA and $500K in CNC equipment.

But:

❌ Owner ran all programming + client quoting
❌ No trained operators, SOPs, or process manuals
❌ 62% of revenue from one aerospace client
❌ No CapEx reserve for aging mill + tooling

📉 True FCF after replacement comp and risk = ~$68K
🔧 Equipment FMV = ~$325K
✅ Value: ~$435K (not $1M)

📌 Don’t overpay for machines without the team to run them.