🧯 Deadly Sin: Ignoring Customer Concentration Risk If one client makes up 30%+ of revenue, your cash flow has a single point of failure. Yet appraisals often: ❌ Ignore this risk❌ Apply normal multiples❌ Assume “it’ll be fine” 📌 Appraisers and SBA lenders must adjust value—or structure around it—when concentration threatens stability.

📘 We created a Franchise Valuation Checklist for SBA lenders and analysts. Includes: ✅ Common franchise-specific red flags✅ Required adjustments✅ Royalty treatment✅ Risk factors 📩 Click here to grab your copy.

🍕 A franchise showed $180K in free cash flow. But the financials didn’t include: 8% royalty 3% marketing fee Real FCF? ~$100KBuyer was overpaying—lender got nervous—deal barely closed. Don’t let brand strength blind you to contract risk.

🍔 Not all franchise deals are created equal. We’ve seen appraisals that: Apply generic multiples without royalties Ignore franchisor contract risks Overstate goodwill based on brand alone 📌 SBA-compliant appraisals must adjust for: ✅ Royalties✅ Franchise fees✅ Transfer restrictions✅ Control limitations The brand has value—but the buyer’s control of that value can be limited. And … Continue reading 🧠 Sin Spotlight: The Franchise Valuation Trap

📋 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.