LEGACYBUILT PARTNERS · ILLUSTRATIVE ONLY
Business Value Explorer
Explore how normalized operating profit and your chosen multiple affect an illustrative enterprise value—not a valuation opinion, purchase offer or forecast.
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ILLUSTRATIVE PLANNING · NOT ACTUAL OUTCOMES
EBITDA Value Creation Bridge
Five operating allocations. One reconciled earnings figure. Valuation multiples remain a separate, uncertain market assumption.
Conservative, Base and Stretch compare assumptions—not probabilities. Stretch starts with $5M revenue / 8% margin and a hypothetical $7.5M / 20% future state over 36 months. The 10× future multiple is aspirational, not promised.
Changing the margin target redistributes the five allocations proportionally; it never adds another uplift. Editing a driver updates implied margin. Future revenue is the margin denominator, not an extra EBITDA contribution.
NET EBITDA → ILLUSTRATIVE ENTERPRISE VALUE
- Starting EBITDA
- $400,000
- Five net planning allocations
- $1,100,000
- Less additional costs
- $0
- Net incremental EBITDA
- $1,100,000
- Hypothetical future EBITDA
- $1,500,000
- Implied future EBITDA margin
- 20.00%
01–05 correspond to the five planning allocations. Bars are accounting arithmetic, not evidence of performance.
- Starting enterprise value
- $1,200,000
- Revenue effect at starting margin & multiple
- $600,000
- Margin effect at entry multiple
- $2,700,000
- Uncertain multiple expansion
- $10,500,000
- Hypothetical future enterprise value
- $15,000,000
- Illustrative EV change
- $13,800,000
- Illustrative EV ratio
- 12.5×
The EV decomposition explains the same EBITDA change; do not add these EV levers to the EBITDA allocations. Starting EBITDA + net allocations − additional costs = future EBITDA. Future EV = future EBITDA × chosen multiple.
Cost treatment & attribution boundaries
All five figures are mutually exclusive net planning allocations. Validate them against job-level evidence and the financial statements: the same completed job, labour saving or repeat customer cannot be credited twice. Subtract implementation, recurring systems, fulfilment and agreed platform fees in the relevant allocation—or the additional-cost field if absent—not both. No extra percentage fee or participation distribution is automatically layered onto EBITDA here. One-time implementation and transition cash costs still need a separate cash budget; do not hide them through normalization. Actual costs, timing and benefits require diligence and a negotiated agreement.
Illustrative scenario only, not a forecast, offer, or guaranteed outcome. Valuation multiples vary with market conditions, buyer demand, company quality, and transaction terms. Enterprise value is not the owner's take-home proceeds: net debt, ownership percentage, taxes, transaction costs, working capital and equity arrangements affect proceeds. No institutional 10× exit is promised.
Your business inputs
Use the same period as your normalized EBITDA.
An estimate of operating earnings before interest, taxes, depreciation and amortization, adjusted for agreed non-recurring items.
3× is an exploratory starting input—not a market benchmark. Change it to examine your own assumption.
Debt, taxes and transaction adjustments
Optional assumptions; blank fields mean zero, not a verified absence of costs. These depend on deal structure and adviser review.
Debt less eligible cash. Positive deducts debt; negative adds net cash.
Enter an estimated deduction, zero or more—not a tax calculation.
Positive adds value; negative deducts a shortfall against an agreed target.
Estimated fees and other closing costs, zero or more.
NOT AN OFFER · USD
Your illustration
Enter your revenue and normalized EBITDA to explore a value.
Enterprise value = normalized EBITDA × your multiple. Adjusted equity = enterprise value − net debt − taxes + working capital adjustment − costs.
This is a whole-business illustration, not your personal net proceeds. Ownership percentage, preferred rights, rollover equity, earnouts, debt treatment and transaction-specific taxes can change what an owner receives. No buyer, timing or exit is guaranteed.
Value is a conversation—not one number.
Validate your reporting and adjustments with qualified financial, tax and legal advisers. This explorer does not apply LegacyBuilt partnership fees, sharing arrangements or unfinished transaction terms.
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