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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

EBITDA today$720,0009% of revenue
EBITDA at target$1,440,00018% of revenue
Annual uplift$720,0009.0 margin points, every year

What it adds to enterprise value

5× $3.6M$1M – $5M revenue
7× · your size$5.0M$5M – $15M revenue
10× $7.2M$15M+ revenue

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

Cumulative over 3 years$1,440,000Straight-line climb — the average year captures half the improvement. Undiscounted.
Each margin point is worth$560,000In enterprise value at 7×, per point of net margin.

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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