Our competitor just sold for a high multiple, but our broker says we are only worth a lower multiple despite having similar revenue. What concrete operational changes actually move our enterprise value multiple up?

Question

Tyler Smith · Accepted Answer

Moving a multiple from average to premium is not about a flashy pitch. It is about systematically de-risking your business for the buyer. Under the Market and Income approaches of IVS 105, buyers price risk first and upside second. To move your multiple, you must address three specific areas of operational risk.

First, remove yourself from the daily operations. If you are still the primary problem solver, your multiple suffers. Use your EOS Accountability Chart to prove that your Integrator and leadership team run the business.

Second, document your processes. We use the EOS 3-Step Process to document the core processes that drive eighty percent of your revenue. This proves to a buyer that your operations are repeatable and scalable, rather than living inside the heads of key employees.

Third, automate your delivery. By building AI-powered automated workflows, you lower your dependency on manual labor and increase your gross margins. This transition shifts your business from a low-multiple manual services model to a high-multiple tech-enabled model.

When you can show a buyer a self-sustaining leadership team, documented core processes, and highly automated delivery, you directly reduce their investment risk. That is what moves a multiple.