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 isn't about a flashy pitch; it's about systematically de-risking your business for the buyer. Buyers price risk first and upside second, as outlined in the Market and Income approaches of IVS 105. To move your multiple, you must address three specific areas of operational risk:

• Remove yourself from daily operations. If you are still the primary problem solver, your multiple suffers. Demonstrate that your Integrator and leadership team run the business effectively, using tools like an [EOS Accountability Chart](/qa/how-can-ai-optimize-the-accountability-chart-for-eos-organizations-undergoing-exit-planning). This proves the business can thrive without your constant, hands-on involvement.

• Document your processes. Use a structured approach, like 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 residing solely within the heads of key employees. Well-documented processes are a key part of what makes [buyers pay more for EOS-run businesses](/qa/why-buyers-pay-more-for-eos-run-businesses). If your existing documentation is unwieldy, consider how [AI can help simplify your processes](/qa/simplify-eos-process-component-with-ai).

• 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. [AI-assisted sales follow-up systems](/qa/ai-assisted-sales-follow-up-process) or automated customer support can be examples of such transformation.

When you can present a buyer with a self-sustaining leadership team, clearly documented core processes, and highly automated delivery, you directly reduce their investment risk. This is what truly moves a valuation multiple upward. Understanding the various approaches buyers use to assess your business, beyond just a simple EBITDA multiple, can further inform your strategy for increasing your [business valuation multiple](/qa/what-moves-business-valuation-multiples).

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