Seller showed $450K in cash flow after $160K in adjustments.

Problem:

• $36K was “one-time” marketing (used every year)
• $28K in car leases for sales personnel
• $19K in non-owner bonuses “not needed post-sale”
• $27K of normal business insurance

Final adjusted FCF: ~$340K
Valuation dropped. Loan size reduced. Buyer injected more equity.

📌 Always test the addbacks.