💪 Gym and fitness studio valuations often flex the wrong muscle: Membership spikes aren’t sustained post-New Year Owner is the head trainer, brand, and salesperson Equipment is outdated, leased, or seller-retained Addbacks assume all labor is variable (it’s not) 📌 Normalize for reality, not January optimism.

📘 Just released: Our Daycare & Childcare Center Valuation Checklist Includes:✅ Owner/operator role normalization✅ Licensing, staff ratios, and facility review✅ Enrollment risk & age group breakdown✅ Addback challenges in family-owned centers✅ SBA tips for valuing regulated service businesses 📩 Click here to grab your copy.

A center priced at $725K claimed $185K in cash flow. But: ❌ Owner taught, ran the office, and handled enrollments❌ Facility at capacity—but underlicensed❌ No employee handbook, SOPs, or backup staff❌ Addbacks included child snacks, family wages, and lease perks Adjusted FCF: ~$75KTrue value: ~$410K with seller support + licensing review 📌 Lenders saved the … Continue reading ⚠️ Red Flag Case Study: All Smiles, No Structure

 🧸 Childcare centers often reflect strong demand—but valuations fall apart when: The owner is the lead teacher AND director Licensing doesn’t transfer or isn't disclosed Staff-to-child ratios don’t support enrollment numbers Goodwill is tied entirely to the owner’s personal brand 📌 If the kids stay for the teacher, not the business—it’s not enterprise value.

🧾 Now available: Our Home Health Care Services Valuation Checklist Covers:✅ Owner vs. staff production review✅ Labor compliance (W-2 vs. 1099)✅ Client relationship & goodwill transferability✅ Staff retention + capacity risk✅ SBA SOP alignment 📩 Click here to grab your copy.

A home care provider was priced at $950K based on $140K in cash flow. But: ❌ Owner was a full-time caregiver❌ No W-2 staff—just part-time 1099s❌ No formalized client contracts❌ High goodwill assigned to owner-driven reputation Adjusted free cash flow: ~$60KRevised value: ~$465K with seller support for transition 📌 Lender avoided over-financing.

 🏥 Home health care companies often report strong margins—but do they have the staff to deliver that revenue? Top red flags in valuations and underwriting: Owner is a caregiver, scheduler, and marketer No long-term staff contracts or retention strategy Non-compliant labor practices (1099 caregivers vs. W-2) Goodwill assigned to client relationships tied only to owner … Continue reading 🧠 Valuation Insight: Cash Flow ≠ Capacity

🧾 Just released: Our Auto Body & Collision Repair Valuation Checklist for SBA lenders Covers:✅ DRP & insurance contract concentration✅ Owner/tech comp normalization✅ CapEx for paint booths, lifts, frame machines✅ Labor + material margin breakdown✅ SBA tips for valuing repair shops 📩 Click here to grab your copy.

A body shop claimed $265K in SDE and priced the business at $995K. But: ❌ 72% of work came from one DRP insurance contract❌ Frame machine and paint booth overdue for replacement❌ Owner + brother = unpaid labor❌ Payroll was 60% of norm for revenue level Adjusted FCF: ~$115KRevised value: ~$675K 📌 Lender and appraiser … Continue reading ⚠️ Red Flag Case Study: Out of Alignment

 🚘 Auto body shops can generate steady work, but valuations often get dented by: Insurance DRP dependency (and no contract backups) Equipment wear-and-tear with no CapEx normalization Low margins misrepresented as cash flow Owner or family techs not replaced at market wages 📌 Volume doesn’t equal value—especially if it’s underpaid or unsustainable.