A branded service center (franchise) asked $650K based on $125K in cash flow. But: ❌ Owner worked 50+ hours/week at the front desk❌ $22K addback = “owner vehicle” and “marketing”❌ Franchise + royalty fees not properly adjusted❌ No staff retention plan in place 📉 Normalized FCF = ~$38K📦 Revised valuation = ~$225K 📌 Overprinting SDE … Continue reading ⚠️ Red Flag Case Study: The $650K Overprint

📦 Copy shops and service centers (like UPS Stores) often look stable—but dig deeper. Common valuation issues: Owner often works the counter full-time Addbacks include personal vehicle or labor Heavy franchise fees and marketing contributions Limited pricing control due to brand/franchise rules 📌 Rule of thumb: Royalty doesn’t mean loyalty. If margins are tight and … Continue reading 🧠 Valuation Insight: Copy Shops / Business Service Centers / UPS Stores – Franchise Fees ≠ Free Cash Flow

📐 Ready to simplify engineering firm valuations? Grab our new checklist for SBA lenders. Covers: ✅ License transfer + staff dependency✅ Addback traps: vehicles, meals, and unbilled time✅ Revenue concentration + contract renewal risks✅ Red flags: no junior staff, long A/R cycles, no CRM 📩 Click here to grab your copy.

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, … Continue reading ⚠️ Red Flag Case Study: The $1.1M Pipe Dream

📐 Engineering firms can post healthy margins—but the expertise is often tied to one person. Valuation challenges: Owner is the licensed PE or lead on billable hours No junior staff or succession plan Project-based income with long billing cycles Revenue tied to personal relationships or referrals 📌 Rule of thumb: No license, no leverage. Without … Continue reading 🧠 Valuation Insight: Engineering Consulting Firms- When the Expertise Leaves, Does the Value?

📝 New for SBA lenders: Our Restoration Valuation Checklist—built for flood/fire/mold cleanup companies. Includes: ✅ Storm surge normalization + insurance dependency✅ Owner/operator comp and estimating role✅ Equipment, truck, and CapEx traps✅ Red flags: no contracts, no CRM, and event-based spikes 📩 Click here to grab your copy.

A restoration company asked $950K, citing $290K in cash flow. But: ❌ 41% of revenue from one hurricane season❌ Owner wrote all estimates & ran crews❌ $45K in addbacks = truck depreciation + uncle’s “bonus”❌ No contracts—just insurance referrals 📉 Normalized FCF = ~$88K💧 Revised value: ~$600K 📌 One big storm can’t justify a big … Continue reading ⚠️ Red Flag Case Study: The $950K Washout

🚨 Flood & fire restoration businesses often show strong earnings—but what’s buried under the rubble? Common risks: Revenue spikes from one-time storm events Owner often handles estimating or field supervision No formal recurring contracts—only job calls Addbacks tied to truck depreciation or unpaid labor 📌 Rule of thumb: If earnings ride on a hurricane or … Continue reading 🧠 Valuation Insight: Restoration Cash Flow Isn’t Always Restorable

📘 Just released: Our Machine Shop Valuation Checklist for SBA 7(a) underwriting of small manufacturers and tool & die businesses. Covers: ✅ Owner labor vs. market replacement✅ Job vs. contract revenue risk✅ Equipment FMV vs. book value✅ Red flags: CapEx gaps, client concentration, asset bloat 📩 Click here to grab your copy.

A machine shop priced at $1M based on $250K EBITDA and $500K in CNC equipment. But: ❌ Owner ran all programming + client quoting❌ No trained operators, SOPs, or process manuals❌ 62% of revenue from one aerospace client❌ No CapEx reserve for aging mill + tooling 📉 True FCF after replacement comp and risk = … Continue reading ⚠️ Red Flag Case Study: The $1M Machine Trap