00
Today.
You own 100% of a business doing $2.4M a year. A buyer would pay you roughly 2.5× annual EBITDA — because a buyer is really buying you, or an asset behind you that’s only valuable because of you. The business doesn’t run or scale without you.
Your wealth is locked inside the company. Liquid only if you sell. And you can’t really sell, because there’s not so much to transfer.
R
Refine.
Systems. Documentation. A management layer. Sales and delivery no longer pass through you.
Operating leverage kicks in — margin expands from 21% to 27%. And because the business is now transferable, the market re-rates your multiple from 2.5× to 4×.
- EBITDA margin 21% → 27%
- Multiple 2.5× → 4×
- Wealth ×2.8 — same ownership, different asset
I
Invest.
The obvious path is acquisition — bolt-ons, verticals, competitors — funded with debt so your equity stays intact.
The less obvious path is often the better one: invest in what enables the next lever. A coffee shop fits out a corner as a kids’ play area — not to run it, but to Share it later with a childcare operator. A clinic adds a second treatment room to open the door to a physio JV. A B2B services firm builds a data layer that only becomes valuable when a tech partner plugs in.
Either way, revenue ×3.3 to $8M, EBITDA triples, multiple moves to 5× — all while you still hold 100%.
- Revenue $3.2M → $8M
- EBITDA $860K → $1.8M
- Wealth ×5.6 — still every share yours
S
Share.
Share isn’t “take on a growth partner.” It’s a structural move:
- A JV with an adjacent operator whose offering plus yours creates a proposition the market doesn’t have yet
- Consolidating several single-location operators into one brand that commands a premium none could reach alone
- A capability swap — your distribution, their product — structured as a new entity with real governance
You might give away 50% along the way. But your combined position — direct equity in a far bigger enterprise, plus shares in the new platform you helped create — is worth more than the 100% you held before.
Combined position: $23.6M+ (direct stake plus platform shares) — ×3.4 more than you held at 100% after Invest, and a seat at a platform it would have taken a decade to build alone.
E
Exit.
A strategic buyer or PE platform pays 8× forward EBITDA — a premium for readiness, structure, and a verifiable track record. Enterprise value at close: $50M+.
Your share clears $37.5M+. With distributions along the way, call it $38M.
30× the wealth you’d have netted selling on day one — holding a smaller share of a far bigger company.
Start with a Readiness Review
Every engagement begins with a confidential review — not a pitch. Choose the path that matches your business reality.