I’ve spent 30+ years running and opening hospitality operations (Hyatt, Sheraton, Aramark, Meta’s corporate dining program) and consulting on restaurant startups and conversions. Hospitality deals come up here regularly, so here are the things I check that often don’t show up in the CIM or the seller’s P&L: 1. The owner is the business. If the owner works the line, does the ordering, handles the books and knows every regular by name, their labor is hidden in the SDE. Price in a GM’s salary, often $60–90K+, and ask what happens to revenue when they leave. 2. Prime cost over 65%. Food, beverage and labor combined should usually land around 55–65% of sales. Above that, margins are thin, and small swings in commodity prices or wages hurt fast. 3. Cash and tip handling. Compare POS reports, bank deposits and sales tax filings. Gaps between them are common, and so are “unreported revenue” stories you can’t underwrite. 4. Deferred maintenance in the kitchen. Walk-ins, hoods, dish machines and grease traps are expensive. Get a kitchen equipment inspection, not just a general building inspection, and look at the last few health inspection reports. 5. The lease is the deal. Remaining term, renewal options, assignment clauses, percentage rent and CAM charges can make or break a restaurant. If there are fewer than 5–7 years left with options, be careful. 6. Key-person risk beyond the owner. A chef or bar manager who holds all the recipes, vendor relationships or regulars can walk out the week after closing. Find out who they are and plan retention before you close. 7. Licenses that don’t transfer. Liquor licenses, health permits and gaming licenses (in states like Nevada) don’t always transfer cleanly or quickly. Build that timeline into closing. What else have you all run into on hospitality deals? I’m happy to answer questions, and if anyone is evaluating a restaurant, catering, event or boutique hotel business, I’m glad to take a quick look at the operations side.