This business sold for 6.4x. The one next door? 2.1x.

Here’s why + how to use automation to create an exit premium

Author

kurt becker
April 21, 2025

Two nearly identical businesses. One sold for 3x more.

Here’s why — and how to use automation to create an exit premium.

TL;DR

  • Two similar service businesses. One sold for 6.4x. The other? 2.1x.

  • The difference wasn’t revenue or branding — it was structure.

  • We break down what smart buyers (and sellers) do differently — and how automation is quietly changing exit multiples.

It Happens Every Week . .

Two businesses. Same industry. Same revenue. Same market.
Radically different outcomes.

  • Business A sold in 41 days for 6.4x EBITDA

  • Business B sat on the market for 9 months — then closed at 2.1x

Here’s why . .

Reason #1: Owner Dependency (aka “Key Man Risk”): The Invisible Anchor

Business A had a GM . . and a second-in-command.
Business B? The owner still scheduled jobs and handled customer calls.

Buyers don’t pay for chaos. They pay for continuity.

If your business breaks when you step away . . . you’re not selling a business — you’re selling a high-functioning disaster . .

Reason #2: Clean Books + Clear Visibility

Business A had:

  • Monthly P&Ls

  • CRM with customer data

  • 3 years of clean financials

Business B had:

  • A folder of invoices

  • A part-time bookkeeper

  • Verbal customer history

Buyers want pattern recognition . . . NOT a damn treasure hunt.

Reason #3: Measurable Automations That Actually Increased Earnings (Quietly)

Business A had two automations in place:

  • Invoicing + payment follow-up using QuickBooks + Zapier

  • Lead nurturing using Apollo → CRM → Email

This added $40K+ in margin . .

reduced headcount . . and made revenue predictable.

It’s not about “AI” — it’s about creating leverage . . .

AI is just how you create the leverage.

The Real Lesson here . .

Exit “Multiples” are based on way more than just cash flow.

Multiples reflect:

  • How easily your business transfers

  • How well it runs without you

  • How intelligently it’s operated

Installing automations that increase revenue . . lower costs . . and lower risk . . .

= Creation of Enterprise Value

Want to see Where Your business Stands?

We’re testing an Exit Readiness Assessment that shows:

  • What your business might be worth today

  • What’s lowering your exit multiple

  • How to increase it before you go to market

If you’d be interested in trying the assessment . .

Until next week,
— The Private Investor Memo