The single biggest drag on a sale multiple is a business that cannot run without its founder.
The KODI Index measures how much of the business relies on the owner personally.
Owner dependence is the gap between what the business produces with you and what it would produce without you. The KODI Index measures management depth, decision making, relationships, and knowledge that live only with the owner. Buyers discount heavily for dependence, and most owners underestimate how dependent the business actually is.
Reducing owner dependence is one of the highest-impact ways to lift a sale multiple.
The KODI is one of five proprietary scores inside the Keystone Value Creation Assessment™. Every recommendation ties back to improving one or more of them.
Salary, distributions, retirement contributions, and accountable plans structured to maximize after-tax outcom
Explore serviceRetained earnings, owner draws, and reinvestment aligned to one plan, because business decisions and personal
Explore serviceBuilt on private equity experience scaling portfolio companies from approximately $50M to $500M and beyond. Th
Explore serviceThe Keystone Value Creation Assessment™ audits your last 12 to 36 months and gives you a written summary whether you engage us or not. If there is not a clear opportunity to create value, we will tell you directly.