The offer was 5x. Two thirds of it depended on you staying.

When a buyer discounts owner dependency, the discount rarely shows up in the multiple: it shows up somewhere far more expensive, and much later.

By Steve 5 min read
Abstract bridge artwork for The offer was 5x. Two thirds of it depended on you staying.

An owner reads the offer letter and sees the number they hoped for. Five times adjusted earnings, on earnings of a little over a million. Then they read the second page. Forty per cent on completion, the rest across a three-year earn-out, contingent on performance, with the owner staying for at least two of those years in a defined role. The headline multiple was never the negotiation. The structure was. And the structure is where owner dependency gets priced. The discount lands in the structure, not the multiple It helps…

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Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

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