The buyer's investment committee is sticking to a rigid EBITDA multiple based on small-market comps, but our growth rate and margins are far superior. How do we use objective market data to break this deadlock?

Question

Tyler Smith · Accepted Answer

When a buyer tries to force a low multiple using arbitrary regional comps, you must shift the conversation to an objective, data-driven framework. Instead of arguing about subjective multiples, introduce the Ankura quantitative valuation framework. This methodology uses a regression-based model trained on a vast dataset of public company transactions to analyze how specific financial metrics impact enterprise value. By running your financial data through this regression model, you can demonstrate how your superior growth rate, capital efficiency, and operating margins objectively justify a higher multiple. This takes the emotion out of the negotiation and forces the buyer's investment committee to look at statistical reality. To support this quantitative model, you must show that your superior performance is sustainable. Use your V/TO to present your three-year picture and your one-year plan, backed by your historical performance. When you show the buyer that your high margins are a direct result of disciplined execution and AI-powered operations, and you back it up with a regression-based valuation, you change the dynamics of the negotiation and protect your enterprise value.