Exit Strategy · 5 min read

EBITDA & Exit Value: The Numbers That Decide What You Walk Away With

Earnings before interest, taxes, depreciation and amortization is the lever that determines your exit multiple. Here's how to move it on purpose.

When a business sells, the price is usually a multiple of EBITDA. Two levers decide your outcome: the EBITDA itself, and the multiple a buyer is willing to apply to it. Improve both and you don't just add a little — you compound your exit.

Raising EBITDA

Optimize margins, forward-plan tax, document recurring revenue, and deploy capital into customer acquisition. Each move raises the earnings number a buyer multiplies.

Raising the multiple

Owner-independence, clean verifiable books, a fundable entity, and a documented digital footprint all push the multiple up. A business that runs without its owner and proves its income commands the premium end of the range.