An SBA buyer was looking at a $1.2M deal with $240K projected FCF. But... ❌ 85% of units under verbal or cancel-anytime contracts❌ No formalized software or tenant payment portal❌ Owner handled all relationships❌ Travel reimbursements and family payroll not adjusted 📉 Adjusted FCF: $80K📉 Revised valuation: $540K ✅ Moral: Managing properties isn’t the same … Continue reading ⚠️ Red Flag Case Study: Locked Out of Reality

Valuing property management companies means digging beneath the leases. Key challenges for SBA 7(a) valuations include: Contractual stickiness – Are accounts locked in or month-to-month? Owner dependency – Is the founder the sole point of contact? Overstated margins – Payroll and travel are often underreported Diversified revenue – Maintenance markups, leasing commissions, HOA fees? 📌 … Continue reading 🧠 Valuation Insight: Property Management Companies-Who Owns the Rent?

🧥 Hot off the press: Our Dry Cleaner Valuation Checklist for SBA lenders Includes:✅ Owner/operator labor risk✅ Pressing equipment, boiler, and CapEx review✅ Route delivery risk and client concentration✅ Environmental and utility cost allocation✅ Normalized FCF and SBA-aligned methodology 📩 Click here to grab your copy.

A dry cleaning business was listed for sale at $495K on $130K "cash flow." But... ❌ Owner worked 50+ hrs/week managing customer flow❌ Utilities grossly understated – no allocation for solvent disposal❌ Boiler and shirt unit both past useful life❌ Route revenue overstated without contracts ✅ Normalized FCF: ~$45K✅ Final value estimate: $290K (after labor, … Continue reading ⚠️ Red Flag Case Study: Steamed and Pressed

 Dry cleaners can seem like steady cash businesses—but beneath the starch, there are unique risks that impact valuation: Owner often handles front desk, tagging, customer service Route revenue vs. walk-in revenue isn't broken out CapEx for boiler, presses, and spotting equipment often ignored Addbacks for personal dry cleaning, unreported labor, or below-market rent 💡 A … Continue reading 🧠 Valuation Insight: Dry Cleaners-The Pressing Issues Behind the Curtain

🧺 Just released: Our Laundromat & Self-Service Valuation Checklist for SBA lenders Includes:✅ Revenue validation through meter logs and machine counts✅ Owner labor normalization for cleaning, collection, repair✅ CapEx planning for washer/dryer lifespan and kiosk maintenance✅ Lease risk assessment + market rent adjustment✅ SBA-aligned valuation for unattended/self-serve models 📩 Click here to grab your copy.

A coin laundromat was listed at $525K based on $145K in cash flow. But: ❌ Revenue was based on seller estimates—not meter reports❌ Owner collected all coins, did the cleaning, and fixed machines❌ Lease was far below market with 2 years remaining❌ CapEx ignored aging machines and faulty change kiosk ✅ Normalized FCF: ~$42K✅ Final … Continue reading ⚠️ Red Flag Case Study: All Washed Up

 🧼 Laundromats look passive—but valuations can unravel when: The owner is the only one handling coin pickups, maintenance, or cleaning Revenue isn't verified with meter logs or machine count reports Addbacks include personal utilities, rent under market, or undocumented labor CapEx needs are ignored (even though machines age fast) 📌 A room full of machines … Continue reading 🧠 Valuation Insight: Laundromats & Self-Service Facilities-Machines Don’t Run the Numbers

🧼 Just released: Our Commercial Janitorial Services Valuation Checklist Includes:✅ Owner vs. subcontractor labor structure✅ Client contract review + renewal terms✅ Normalization for underpaid, undocumented, or family labor✅ CapEx for equipment, vehicles, supplies✅ SBA SOP-aligned cleaning company valuation adjustments 📩 Click here to grab your copy.

A commercial cleaning business was priced at $625K based on $180K in SDE. But: ❌ Owner was cleaning three accounts personally each night❌ Addbacks included family labor, vehicle lease, and home office❌ Top 3 clients had no written contract—one ended after diligence❌ No CapEx for equipment replacement or supply inventory ✅ Adjusted FCF: ~$37K✅ Revised … Continue reading ⚠️ Red Flag Case Study: Too Much Elbow Grease