We have spent two years building an automated customer onboarding system that uses AI, but because we are a services firm, the buyer is valuing us solely on a services multiple. How do we force the valuation of this asset?

Question

Tyler Smith · Accepted Answer

If you allow the buyer to value you strictly as a traditional services business, you are leaving substantial money on the table. You must prove that your AI-powered onboarding system drives superior operational efficiency and financial leverage.

To force the valuation of this asset, use the Income Approach under IVS 105. Calculate the specific cost savings and margin expansion this technology generates compared to industry benchmarks. Show how it lowers your marginal cost of delivery and accelerates customer onboarding times.

Next, present this technology as a core asset on your EOS Accountability Chart. Show how this automated tool sits within your operations department, reducing headcount requirements and human error. It is a systemized asset, not a personal trick.

You should also segment your business model. Show the buyer your historical margins versus your current margins to isolate the profitability boost from your AI tool. This quantitative proof allows you to argue for a blended multiple that reflects both your service delivery and your technological leverage.

By presenting empirical operational data rather than hype, you force the buyer's Quality of Earnings team to recognize the structural value of your technology.