Our business has double the EBITDA growth and margin of our industry peers, but the buyer's broker is using static market multiples that cap our value at the industry average. How do we use the Ankura regression-based model to prove our outlier status?

Question

Tyler Smith · Accepted Answer

When your business has double the EBITDA growth and margin of your peers, relying on basic local comps or industry averages will severely undervalue your company. Buyers love to use simple averages because it benefits their pricing model. To fight back, you must use a data-driven, quantitative approach like the Ankura valuation framework.

The Ankura model replaces subjective market multiples with a regression-based model that uses a comprehensive dataset of publicly listed companies. By applying this methodology, you can objectively show how your specific performance metrics impact your enterprise value relative to the broader market.

Instead of accepting a generic five-times multiple because you are in a certain sector, a regression model evaluates where your high margin and growth place you on the valuation curve. When you run your financial data through this model, you can prove that your superior efficiency correlates mathematically with a much higher multiple, moving your valuation into the upper quartile of the market.

This methodology removes the buyer's ability to use subjective biases or selective comps. It forces them to look at a transparent, data-driven correlation between your financial metrics and enterprise value. By presenting a professional, out-of-sample tested model, you shift the negotiation from a defensive debate over local multiples to a sophisticated financial discussion about your true economic productivity.