Valuation tool
What would better margins be worth when I sell?
A point of margin is not worth a point of margin. It is worth a point times your multiple, on the day you sell, plus the cash it throws off every year until then. This shows both halves — and the cumulative cash you earn while you climb, which is usually the number that changes the decision.
Where you are
Where you're going
EBITDA uplift
What it adds to enterprise value
At your revenue, 7× is the typical range — so the margin work is worth about $5,040,000 of enterprise value, on top of the $720,000 a year it pays you in the meantime.
The cash you earn on the way
Re-rating — the softer half
A business at 18% net is not just a bigger version of one at 9% — it is a better asset, and tends to clear a higher multiple. A move to this margin typically supports about 0.5 extra turns, which on $1,440,000 of EBITDA is a further $720,000.
Total, including re-rating: $5,760,000. Treat the re-rating portion as a judgment rather than arithmetic — it is the part a buyer will argue about, and it is not guaranteed.
Multiples shown are typical acquisition ranges by business size, not an offer or a valuation. What any individual business achieves depends on recurring revenue, owner dependence, customer concentration, technician retention and market. This model assumes revenue holds flat while margin improves — if revenue also grows, the uplift is larger. Nothing you type here is sent to us, stored, or logged.
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