Worked example

Illustrative assessment

Harbor Industrial Supply (illustrative)

Harbor Industrial Supply is a fictional company. Every number here is invented to show the method. Each score is the share of EBITDA that holds up on that question: VGS asks whether the value transfers, Day Two asks whether it holds after close.

EBITDA at risk (illustrative)

$1.7M a year as found, 40% of Adjusted EBITDA.

Range $1.3M to $2.1M.

At target: $360K a year. Range $270K to $440K.

At the 6.0x deal multiple, plus one-time replacement cost (illustrative)

$10.2M as found.

Range $7.7M to $12.5M.

At target: $2.1M. Range $1.6M to $2.7M.

This is the most a buyer could argue for. Some of this risk may already be in the price.

VGS

70 as found → 93 at target

Score out of 100 · Illustrative

Day Two

87 as found → 98 at target

Score out of 100 · Illustrative

The gap between as found and target is about $8.1M at the deal multiple (range $6.1M to $9.8M). It is a modeled target, not a result. Illustrative.

Ranges run every percentage one quarter lower and one quarter higher, capped at 100%. Each percentage is the chance that slice of EBITDA is lost within 24 months of close, before any transition, retention or earnout terms.

A signed transition agreement alone moves the founder's two lines from 60% and 35% to 35% and 15%, worth about $1.7M at the deal multiple. A named second holder moves them further. Both are in the target state.

Harbor was built to show every bucket at once. A company with second holders on its top accounts and written processes on its critical workflows reads like Harbor's target state: 8% of EBITDA exposed, not 40%. Most companies land between the two.

See the line items behind this number

Try it yourself

These two tours show the kinds of questions we ask. Try one yourself, or share it with a colleague. In a real Assessment the score comes from the dollar math, as Harbor shows above.

What happens next?

You provide the business facts. GrowFast reviews the evidence and prepares the Assessment findings. Those findings inform the next conversation about a Plan and Runway.