EXIT MODEL · MFG/A · ILLUSTRATIVE

What does the spend do to the number you sell on?

Exit proceeds are EBITDA times a multiple. Most operators only feel the first term — the spend coming off EBITDA. Arm an investment below and watch the second term: the turn on the multiple, which is usually the larger number. Nothing here is a quote; the mechanism is the point.

Your starting point
Three reports, three margins → the story multiple
Arm the investments
Readout · MFG/A exit model
A — Hold
EBITDA$8.0M
Multiple6.0×
Proceeds$48.0M
B — Invest
EBITDA after spend$8.0M
Multiple + turns6.0×
Proceeds$48.0M
Delta at exit$0.0M
Turns bought
+0.0×
Total spend
$0.0M
Return on spend
Illustrative · multiples vary by sector, size, and buyer · the mechanism does not. The spend is taken straight off EBITDA, exactly as the reflex fears.
Price your actual turn Start with the $3,000 ERP data audit