The offer is 5× EBITDA. Half of it is contingent on you staying.

Owner dependency rarely shows up as a lower multiple. It shows up in the structure of the deal, and by then it is too late to fix.

By Steve 5 min read
Abstract bridge artwork for The offer is 5× EBITDA. Half of it is contingent on you staying.

Most owners preparing to sell think about the multiple. They benchmark it, argue about it, and treat it as the single number that settles what two decades of work were worth. Then the offer arrives and the multiple is roughly what they expected, but only a portion of the consideration is payable at completion. The rest is deferred, tied to earn-out targets, or conditional on the owner remaining in post for two years at a salary set by someone else. The multiple held. The value moved anyway. This is the…

Keep reading for free

Create an account to read the rest.

The whole library is free. No card, no subscription, no trial that quietly ends. An account simply lets us know who we are writing for, and opens every article from here on.

  • Every article, in full, at no cost
  • New articles published every weekday
  • Takes about twenty seconds
Create a free account I already have one

Free means free. We will not charge you for the library, and you can read as much of it as you like.

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.

More on Growth strategy

Scroll to Top