🛒 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.

A pest control firm showed $140K in SDE and wanted $495K. But: ❌ Owner ran 95% of routes personally❌ “Contracts” were informal and non-binding❌ Addbacks included personal gas and truck lease❌ No staff, no CRM, no SOPs We normalized for buyer labor and capex. Adjusted FCF: $45KTrue value: ~$260K 📌 Lender avoided over-financing a job … Continue reading ⚠️ Red Flag Case Study: Owner-Operated Trap

 🪳 Pest control companies look attractive on paper—recurring contracts, steady demand—but valuations still fail when: Routes are owner-run and not transferable Addbacks include personal vehicle or phone tied to service delivery Contract terms are month-to-month or verbal CapEx for trucks and sprayers is ignored Limited or no cash flow despite recurring revenue 📌 Recurring revenue … Continue reading 🧠 Valuation Insight: Recurring Revenue ≠ Recurring Value

🧾 New release: Our Industrial Equipment Distributor Valuation Checklist It covers:✅ Inventory turnover + obsolescence review✅ Owner comp and labor normalization✅ Customer + contract dependency✅ Margin trend sanity checks✅ SBA SOP guidance on working capital + inventory 📩 Click here to grab your copy.

An equipment distributor was under contract at $1.6M based on $300K in "cash flow." But: ❌ $200K in obsolete inventory was included at full value❌ Gross margins were declining—under 18%❌ Owner did sales, sourcing, and account management❌ 2 largest customers = 58% of revenue ✅ Adjusted FCF: ~$155K✅ Normalized value: ~$925K 📌 Cash flow pays … Continue reading ⚠️ Red Flag Case Study: Stale Steel and Phantom Margins