The Value I Bring — Enterprise Value Delta, Not Hours

Short version: I build systems that turn an owner-operated business into a verifiable, transferable, financeable asset. The output is not “work performed”. The output is enterprise value delta: a higher defendable valuation and cleaner terms that hold under buyer diligence.

1) What I Actually Build (and what I do not)

I build a system to force a specific financial outcome: maximise enterprise value and reduce the “terms tax” that traps founders post-sale.

• I build: a buyer-grade proof system (earnings that can be verified), a transfer system (the business runs without you), and deal-mechanics clarity (fewer end-stage surprises).
• I do not build: a valuation “story” designed to impress. Buyers pay for what they can verify under diligence.
• I do not promise: a specific multiple or price. I build the conditions that make higher outcomes rational for buyers.

2) The Enterprise Value Equation (buyer logic)

Buyers do not pay for effort. They pay for cash flow they can trust and keep after the owner leaves.

• Enterprise Value (EV) ≈ accepted earnings base × risk-adjusted multiple
• Cash at close ≈ EV × cash percentage − adjustments (e.g., working capital, debt-like items)
• Terms tax ≈ the value pushed into structure (earnout/holdback/escrow) because the buyer cannot price risk cleanly

3) The 3 Levers That Move Value

3.1 Earnings base (what buyers accept)

Founders often talk about “profit”. Buyers ask: what earnings are provable and sustainable post-close?

• Normalisation: separate recurring operations from one-offs, discretionary spend, and transitional costs.
• Evidence: every adjustment needs documents and a short defence that survives diligence.
• Truth metric: SDE vs EBITDA depends on business size and operating model, but the mechanism is the same: make earnings buyer-grade.

3.2 Multiple (the valuation cap)

In owner-operated businesses, the “cap” is usually not market demand. It is transfer risk and proof risk.

• Founder-dependent risk: the business works because you are the system. Buyers discount that heavily.
• Evidence risk: numbers cannot be tied out cleanly, contracts are missing, reporting is inconsistent. Buyers discount that too.
• When proof quality and transferability improve, the buyer can rationally pay a higher multiple.

3.3 Terms (cash vs earnout)

Earnouts and holdbacks are not “evil”. They are a pricing tool when the buyer cannot verify earnings or fears post-close drop.

• High uncertainty → buyer pushes value into earnouts/holdbacks, demands wider indemnities, tighter covenants.
• Low uncertainty → buyer can pay more up-front (often still with a modest escrow for claims).
• The goal is not “perfect terms”. The goal is to remove preventable uncertainty that forces punitive structure.

4) Value Calculation Example (illustrative)

This example is deliberately simple to show mechanism. Numbers vary by industry, buyer type, financing conditions, and what can be proven.

Assumptions (for illustration)

• Accepted earnings base: $200,000 (buyer-grade earnings once normalised and evidenced).
• Current state: founder-dependent + weak proof pack → low multiple + heavier structure.
• Target state: system-driven + buyer-grade proof → higher multiple + cleaner terms.

Current (founder-dependent risk)

• Multiple cap (illustrative): 1.0×–2.0× on the accepted earnings base
• Enterprise value range: $200,000–$400,000
• Typical term outcome under uncertainty: meaningful value moved into earnout/holdback/conditions because the buyer cannot trust post-close continuity

Target (system-driven asset)

• Multiple range (illustrative): 3.0×–6.0× when proof quality improves and transfer risk is reduced
• Enterprise value range: $600,000–$1,200,000
• Typical term shift under lower uncertainty: more paid at close, less value trapped in performance contingencies

5) What “Architecture” Means in Real Life

“Systematised and decoupled from the founder” is not a slogan. It has concrete components buyers recognise and can verify:

• Proof system: clean reporting cadence, reconciliations, and evidence standards for adjustments and claims.
• Transfer system: roles, delegation, SOPs, QA, escalation paths, and independence tests.
• Revenue reliability: clearer contracts/terms, pricing discipline, renewal/churn tracking (if applicable), reduced reliance on one person for sales.
• Risk removal: reduced concentration, backup suppliers, key staff retention plan, compliance gaps closed.
• Deal-mechanics readiness: working capital clarity, liabilities surfaced early, fewer “surprises” that become purchase price adjustments.

6) Proof Pack: What Buyers Need to See

The multiple is a trust premium. Trust is built by what buyers can verify quickly in a data room.

• Add-back evidence log: each adjustment, its documents, and a two-sentence defence.
• Valuation bridge: how we move from reported numbers to accepted buyer-grade earnings.
• Owner dependency score (0–10): where the owner is embedded and the mitigation plan.
• Customer concentration view: revenue by customer and contract fragility map.
• Working capital narrative: what “normal” looks like operationally and what could adjust at close.
• Deal-killer register: issues that can kill the deal or create punitive terms, with fix sequence.

7) How We Build It (process)

This is not vague consulting. It is a structured diagnostic sprint that produces buyer-grade outputs and a prioritised execution plan.

1. Application + fit: objective, timing, buyer type, confidentiality boundaries.
2. Scope + evidence standards: define what “proof” means for your business.
3. Data room staging: minimum viable evidence first; expand only where it changes outcome.
4. Reality interviews: map what only the owner does; where continuity breaks.
5. Build: valuation bridge, evidence log, dependency score, risk map, deal-mechanics exposures.
6. Deliver: defendable valuation range + 100-day Grow to Exit roadmap.

8) What You Must Prepare (inputs)

You do not need perfection. You need access and willingness to replace story with proof.

• Financial: multi-year P&L and balance sheet (where available), trailing period, general ledger exports if possible.
• Bank and tax artefacts (where available): bank statements, tax filings, VAT/GST, payroll filings.
• Working capital schedules: AR/AP ageing, inventory reports, debt schedule, leases, fixed assets list.
• Revenue detail: customer list with revenue by customer, top contracts/terms, pricing model, retention/churn indicators if tracked.
• People and operations: org chart, payroll list, contractors, SOPs/KPIs (if any), and a list of what only the owner does.
• Legal & risk: material contracts, disputes history, insurance, licences/permits, IP/trademarks.
• Systems: key software stack, admin access policy, reporting sources, backup approach.

Missing items are common. They become explicit tasks in the 100-day roadmap. The key requirement is honesty and speed.

9) When This Is Worth It (and when it is not)

Worth it when the business has real cash flow but value is suppressed by founder dependency, weak proof, and unclear mechanics.

• You are within 6–18 months of a sale decision and want control.
• You want fewer renegotiations and less time trapped in an earnout.
• You are willing to fix the top constraints that buyers punish.

Not worth it when you want a “price story” without doing the work of proof and transferability.

• You will not provide documents or reconcile inconsistencies.
• You are unwilling to reduce obvious dependency and concentration risks.
• You are not serious about changing operations to make the business survive without you.

Disclosure: Informational only; not legal, tax, or investment advice. Examples are illustrative. Transaction outcomes depend on jurisdiction, buyer type, financing conditions, and case-specific facts.