A salon priced at $415K claimed $125K in cash flow. But: ❌ Owner provided 60% of all services and didn't take a salary❌ Booth rentals underreported + mostly cash❌ Addbacks included spa treatments, vacations, and “brand clothing”❌ No CapEx for 7+ years—chairs worn, mirrors cracked ✅ Adjusted FCF: ~$30K✅ Final valuation: ~$235K with a 6-month … Continue reading ⚠️ Red Flag Case Study: All Style, No Substance

 💈 Salon valuations often look better on paper than they perform in reality: Owner does most of the services and keeps clients Booth rental income is inflated or cash-based No CapEx for salon upgrades, chairs, or equipment Addbacks include spa treatments, family discounts, and perks 📌 If the clients follow the stylist—not the brand—it’s not … Continue reading 🧠 Valuation Insight: Chairs Don’t Pay the Loan

🧾 Just dropped: Our Plumbing Company Valuation Checklist for SBA lenders Covers:✅ Owner/operator labor vs. market replacement✅ Truck, van, and equipment CapEx review✅ Job-based vs. recurring revenue✅ Licensing, insurance, and customer retention risk✅ SBA-aligned normalization logic 📩 Click here to grab your copy.

A plumbing company was priced at $880K based on $240K in SDE. But: ❌ Owner was the only licensed plumber—also did estimates❌ Two vans were leased personally and excluded from financials❌ Addbacks included home utility bills and family cell phones❌ No recurring contracts—100% project-based ✅ Adjusted FCF: ~$75K✅ Revised value: ~$460K with licensing and labor … Continue reading ⚠️ Red Flag Case Study: One Man, One Van

 🚿 Plumbing business valuations can leak value when: The owner is the master plumber + lead tech + estimator Revenue comes from one-time jobs, not recurring service Tools, vans, and gear are left out of CapEx planning Licensing isn't transferable or not disclosed 📌 A business that depends on one person’s wrench isn’t enterprise value.

📘 Just released: Our Electrical Contractor Valuation Checklist for SBA lenders Includes:✅ Owner/operator labor & licensing review✅ Project vs. recurring revenue normalization✅ CapEx and truck/tool inventory✅ Customer concentration and contract risk✅ SBA-compliant normalization guidance 📩 Click here to grab your copy.

This contractor claimed $285K in "cash flow" and wanted $925K. But: ❌ Owner ran all estimates and handled complex service calls❌ Two trucks were leased personally—not on books❌ Revenue was inflated by a one-time hotel project❌ No apprentice training, no transition team ✅ Adjusted cash flow: ~$85K✅ Revised value: ~$520K after project normalization + labor … Continue reading ⚠️ Red Flag Case Study: Shocking Adjustments

 ⚡ Electrical contractor valuations often short-circuit when they: Use project-based income without smoothing Ignore owner’s labor as lead estimator/technician Omit CapEx for trucks, lifts, or diagnostic tools Assign goodwill without considering licensing transfer 📌 If you wouldn’t wire a building without a plan, don’t underwrite one without normalization.

📘 Just released: Our Fitness Centers & Gyms Valuation Checklist for SBA lenders Includes:✅ Owner-labor replacement logic✅ Recurring vs. one-time revenue sanity checks✅ CapEx cycles for key equipment✅ Addbacks to question (personal trainer, meal prep, phone)✅ SBA guidance for member-based businesses 📩 Click here to grab your copy.

This boutique gym priced at $795K based on $215K SDE. But: ❌ 72% of clients joined after a Groupon campaign❌ Owner taught 80% of classes—no replacements lined up❌ No CapEx for equipment or software❌ Addbacks included personal training certifications + phone Adjusted cash flow: ~$110KFinal valuation: ~$435K 📌 Valuing sweat equity without infrastructure? That’s a … Continue reading ⚠️ Red Flag Case Study: Strong on Paper, Weak on Infrastructure