A follower sent me this restoration business out of Orlando, and honestly, the numbers immediately looked suspicious.
They are asking only $181K while claiming over $530K in cash flow.
That should instantly make buyers slow down.
Because deals almost never trade that cheaply unless there is something major missing from the story.
Once we run this through the BizHub calculator, the numbers become almost absurd.
The cash flow multiple comes in at only 0.34x.
That means buyers are supposedly paying 34 cents for every dollar of annual cash flow.
Meanwhile, similar businesses in this industry typically sell closer to 2.2x cash flow.
The projected DSCR comes in above 20.
And according to the calculator, the buyer recovers their down payment in roughly two weeks.
In other words, the financial model itself is basically screaming that these numbers probably are not telling the full story.
A lot of listings like this are not traditional business acquisitions.
They are often franchise-style or licensing opportunities disguised as standalone businesses.
And the wording in the listing gives it away.
That starts sounding less like you are buying a mature independent company...
And more like you are buying into a larger system.
Which means the real economics may look completely different once you account for royalties, franchise fees, corporate splits, lead generation costs, marketing fees, required staffing, or operational obligations.
A lot of inexperienced buyers see the headline cash flow and stop asking questions.
That is exactly how people get trapped in bad deals.
Before getting remotely excited about this listing, I would want to verify the fundamentals myself.
Because restoration businesses can absolutely be profitable...
But listings almost never legitimately trade for 0.34x cash flow unless there is something buyers are not seeing.
One of the biggest mistakes buyers make is assuming the calculator replaces judgment.
It does not.
Sometimes the most valuable thing a calculator can do is tell you the numbers are so unrealistic that deeper skepticism is required.
Because when a deal looks too good to be true...
It usually is.
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