🧾 New resource: Our Convenience Store Valuation Checklist for SBA lenders Covers:✅ Owner and family labor normalization✅ Inventory vs. goodwill logic✅ Gross margin sanity checks✅ Lottery, tobacco, ATM, and vendor program treatment✅ SBA underwriting considerations 📩 Click here to grab your copy.

This store claimed $190K in cash flow and priced the business at $925K. But: ❌ Gross margins were shown at 20%—industry average is ~12-14%❌ No adjustment for family labor on night/weekend shifts Adjusted cash flow: ~$105KTrue value: ~$560K 📌 Lender avoided an over-leveraged deal—and a costly default.

 🏪 C-stores generate steady revenue—but valuations can unravel fast when: Margins are inflated beyond industry norms Owner or family labor isn’t normalized Lottery, tobacco, or ATM income is treated inconsistently 📌 “Simple business” doesn’t mean simple valuation.

🧾 Just dropped: Our Grocery Store Valuation Checklist for SBA lenders Covers:✅ Owner and family labor normalization✅ Shrink/spoilage and COGS benchmarks✅ Inventory valuation logic✅ CapEx for refrigeration and store systems✅ SBA SOP alignment for retail risk 📩 Click here to grab your copy.

A broker priced a grocery store at $950K based on $215K in cash flow. But: ❌ Owner worked 60+ hours/week❌ Two adult children worked unpaid❌ Margins inflated by underreported COGS and no shrinkage Adjusted free cash flow used in the business valuation: ~$90KFair market value: ~$525K 📌 Lender caught it before closing. That’s how you … Continue reading ⚠️ Red Flag Case Study: Shelf Life Expired

 🛒 Grocery stores operate on tight margins—and even tighter tolerances for error. Red flags include: Gross margins >30% (not realistic in most cases) No adjustment for spoilage or shrinkage Inventory value never changes Owner wages + family labor not normalized 📌 In grocery deals, small missteps = big impact on cash flow.

🧾 Just released: Our Landscaping & Lawn Care Business Valuation Checklist Includes:✅ Owner/operator labor adjustments✅ CapEx vs. depreciation guidance✅ Commercial vs. residential customer mix✅ Seasonality smoothing techniques✅ SBA tips on green industry underwriting 📩 Click here to grab your copy.

A lawn care company reported $155K in SDE and priced at $895K. But: ❌ 80% of work was done by the owner and son❌ Equipment was 10+ years old, no CapEx in place❌ “Routes” were informal and undocumented❌ Addbacks included personal trailer lease and fuel Adjusted free cash flow: ~$55KRevised value: ~$275K (with seller note … Continue reading ⚠️ Red Flag Case Study: $400K in Goodwill… or Just Sweat?

 🌿 Lawn care businesses might show consistent revenue—but dig deeper: Is the owner doing the mowing, quoting, and invoicing? Are workers seasonal or full-time? Are CapEx needs (mowers, trailers, tools) normalized? Is revenue concentrated in a few commercial contracts? 📌 Green cash flow must be adjusted for equipment burnout and labor gaps—not just grass roots.

📘 Just released: Our Pest Control Business Valuation Checklist Includes:✅ Owner route dependency test✅ Vehicle/tool CapEx adjustment logic✅ Contract review guidance✅ Staff and systems checklist✅ SBA underwriting alignment tips 📩 Click here to grab your copy.