We are told our industry average multiple is five times EBITDA, but we want to command a premium eight times multiple when we go to market. What operational value drivers actually move a multiple from average to elite, and how do we build them into our business before we hire an investment banker?

Question

Tyler Smith · Accepted Answer

Buyers do not pay premium multiples for past performance; they pay for the predictability of future cash flows. An average multiple is awarded to businesses that are highly dependent on the founder. To move your multiple from an average five times to an elite eight times, you must systematically remove yourself from daily operations and build institutional value.

First, demonstrate that your business is run by an operating system, not by personality. Ensure your leadership team fully owns the Accountability Chart and that every key seat is filled by someone who gets, wants, and has the capacity to do the job. This is the GWC™ standard.

Second, document your core processes. Buyers pay a premium when they can clearly see that your operations are repeatable, scalable, and fully delegated to a capable team.

Third, prove your growth strategy. Use your V/TO® to show a clear, realistic path to your three-year picture. When a buyer sees that your leadership team is aligned around a unified vision and that your quarterly Rocks consistently drive measurable progress, they view your business as a platform rather than a risky owner-dependent operation. This platform status is what drives the multiple upward.