An engineering firm asked $1.1M on $285K of SDE.

But:

❌ Seller was sole licensed engineer + client liaison
❌ No staff, no succession, no junior PE
❌ 58% of revenue from municipal contract renewed yearly
❌ Addbacks included personal vehicle + vague ‘biz dev’ travel

📉 Normalized FCF: ~$105K
📐 Real value closer to ~$760K

📌 Licensing, staffing, and project concentration are real valuation risks.