The DSCR is the honest answer to every valuation debate. Argue multiples all day, but the lender doesn't care. They care whether the business can service the debt. That's where most deals actually get repriced. The issue is the EBITDA feeding that calculation. If the owner is running sales, ops, and management for free, that margin doesn't survive the transition. Normalize for what it actually costs to run the business without them and the debt service math changes fast. Every valuation input is only as good as the earnings number underneath it.

A+ ^redacted‌! Your explanation is why I tell my buyer clients to ask a few questions, read the CIM, and then apply the DSCR model. Quick for go or no/go.