🚨 Family members on payroll who don’t work there? That’s a valuation killer.

We found:

• $38K to a retired uncle
• $21K to a daughter in college
• $12K to a spouse listed as “office admin” (but worked elsewhere full-time)

These non-operating expenses distorted the true free cash flow. After cleaning them out, the value increased 22%.

Underwriters: always ask who’s getting paid and why.