📋 We built a Job vs. Business Checklist to help SBA lenders separate sustainable enterprises from solo hustles. ✅ Key operating questions✅ Transferability test✅ Red flags for owner reliance✅ SBA loan implications 📩 Click here to grab your copy.

🛠️ $175K in “cash flow.” Looked great—until we realized: No techs No admin Owner did sales, bids, service, collections Market comp to replace the owner: $85K+True FCF: ~$90KValuation fell apart. 📌 If you remove the owner and the business collapses—it’s not a transferable enterprise.

🧯 Deadly Sin: Valuing a Job, Not a Business If the business: 👤 Requires the owner to do everything or the vast majority of work📈 Has no systems, employees, or scale❌ Has no transferable goodwill... …it’s not a business. It’s a job with risk. 📌 We see this most in professional services, owner-operated trades, and … Continue reading 🧠 Sin Spotlight: Valuing a Job, Not a Business

📘 We’ve created a Book Value vs. FMV Cheat Sheet for SBA lenders and analysts. Includes: ✅ Accounting vs. economic definitions✅ When book value is relevant✅ Red flags in asset-heavy deals 📩 Click here to grab your copy.

💼 A seller claimed $950K in asset value. Book value on the balance sheet? $820K. But when we did an M&E appraisal?True FMV: ~$410K Much of the equipment was obsolete. Don’t let accounting numbers dictate real-world risk.

🧯 A balance sheet is not a valuation. Book value may be: Depreciated Incomplete Misclassified Or totally irrelevant for going-concerns 📌 SBA-compliant appraisals should focus primarily on the income approach with support from the market approach. The asset approach has limited applicability.

📘 New tool: Our Projections Risk Checklist for SBA lenders Includes: ✅ When projections are acceptable✅ Common abuses in appraisals✅ Questions for review 📩 Click here to grab your copy.

💼 We reviewed a valuation where the buyer projected 30% growth and a 2x revenue jump post-acquisition. The valuation? Based on unsupported projections as if the company were a startup. But: Mature business in a mature industry Historic growth = 2–3% No new contracts No capital investment We valued the business based on historic free … Continue reading 📊 Case Study: Startup-Level Projections in a Mature Business

📉 Projections are a tool—generally not a justification for 7a valuations. The SBA favors valuation based on historical performance, not hypothetical growth. But we’ve seen appraisals that: Use unsupported forecasts to support value Apply multiples to “future EBITDA” Ignore risk adjustments 📌 If the value is based on what the business might do or what … Continue reading 🧠 Sin Spotlight: Projections ≠ Valuation Basis

🧾 We built a CapEx Adjustment Worksheet to help lenders and analysts test if CapEx has been normalized. It includes: ✅ CapEx drivers✅ Normalization considerations ✅ Common appraisal errors✅ SBA considerations for capital assets 📩 Click here to grab your copy.