📊 Case Study: Obsolete Equipment, Inflated Value

~ Certified Business Appraiser

💼 A service company showed $480K in free cash flow—but had deferred equipment replacements for 3 years.

When we normalized CapEx to $90K/year?
⚠️ True FCF = $390K
📉 Value dropped 20%—and the lender avoided a post-closing cash crunch.

Cash flow without reinvestment isn’t sustainable. It’s short-term optimism.