🧾 New for SBA lenders: Our FMV vs. Strategic Value Cheat Sheet Inside:✅ Definitions and SBA SOP tie-in✅ Common examples of each✅ Red flags in strategic-heavy valuations✅ How to explain this to buyers and brokers It’s a quick-glance guide your underwriting team can use on any appraisal review. 📩 Want a copy? Click here.

📉 A lender sent us a $3.2M valuation for review. But something didn’t add up… The “valuation” assumed: A competitor buyer would gain route efficiency Back-office synergies would reduce overhead $600K in purchase premium based on “growth potential” But the buyer was new to the industry—with none of those synergies. ✅ Our fair market value … Continue reading 📊 Case Study: Strategic Value Trap

🧯 Deadly Sin: Using the Wrong Standard of Value If a valuation is based on strategic value instead of fair market value, the lender isn’t underwriting the business—they’re underwriting the buyer’s motives. Fair market value assumes: ✅ A hypothetical buyer✅ No special advantages✅ A willing seller in an open market Strategic value assumes: 💰 Synergies🚀 … Continue reading 🧠 Sin Spotlight: Wrong Standard of Value

📋 Just dropped: Our Multi-Unit Fast Food Valuation Checklist for SBA 7(a) lenders and deal reviewers. Includes: ✅ Owner labor vs. GM coverage✅ Franchise + royalty fee impact✅ Lease and location-by-location risk✅ Addbacks: car, perks, undocumented admin wages 🍔 Click here to grab your copy.

A seller priced 3 fast food units at $1.8M based on $425K in “cash flow.” But: ❌ One unit had no manager—owner floated between stores❌ $75K in addbacks = car allowance, meals, and “admin” payroll❌ Franchise + ad fees totaled 12%❌ One lease was below-market + set to expire 📉 Adjusted FCF: ~$185K🍟 Real value … Continue reading ⚠️ Red Flag Case Study: The $1.8M Franchise Fumble

🍔 Multi-unit QSRs often show high sales—but not all cash flow is created equal. Top valuation traps: Franchise royalties + ad fund fees eat margins Corporate pricing and POS limits flexibility Owner may be the only salaried manager across 3+ units Lease terms vary wildly across locations 📌 Rule of thumb: A $1M shop with … Continue reading 🧠 Valuation Insight: Multi-Unit Fast Food Franchises-Don’t Confuse Volume with Value

📋 Our Towing Valuation Checklist is now available—built for SBA lenders reviewing automotive roadside & recovery deals. Includes: ✅ Owner labor vs. full driver team✅ Fleet condition and CapEx needs✅ Addback traps: fuel cards, vehicle write-offs, family labor✅ Red flags: no rotation contract, 1-driver operation, unrecorded cash 📩 Click here to grab your copy.

A towing business asked $500K, based on $180K of “cash flow.” But: ❌ Owner drove most shifts + handled dispatch❌ $30K in addbacks = gas, “personal use” truck, and non-itemized fuel cards❌ 78% of revenue from one police contract❌ No CapEx for trucks over 10 years old 📉 Real FCF: ~$34K📦 Revised value: ~$225K 📌 … Continue reading ⚠️ Red Flag Case Study: The $500K Breakdown

🚛 Towing companies often show strong revenue—but beware of hidden risks under the hood. Valuation watchpoints: Owner often drives and dispatches Revenue may be concentrated in one contract (e.g., police rotation) CapEx for trucks is often ignored Addbacks tied to fuel, vehicle depreciation, or cash collection 📌 Rule of thumb: If the truck fleet is … Continue reading 🧠 Valuation Insight: Trucks Break Down. So Can the Deal.

📄 New for SBA 7(a) lenders: Our Copy Shop & Service Center Valuation Checklist Includes: ✅ Owner labor vs. market replacement✅ Franchise royalty + fee structure normalization✅ Addback traps: vehicles, perks, vague “marketing”✅ Red flags: no lease transfer, staff turnover, or outdated equipment 📩 Click here to grab your copy.