🧯 Deadly Sin: Ignoring Capital Expenditures

A business that looks cash-rich today might fall apart tomorrow if it’s not reinvesting.

CapEx needs are often:

🔧 Buried in “repairs and maintenance”
📉 Ignored in cash flow estimates
📉 Excluded from projections

📌 SBA-compliant valuations must deduct reasonable ongoing CapEx to calculate real free cash flow.

Otherwise, you’re lending against a business in decline.