From Essential to Exponential: Why Stepping Back Can Boost Your Business Value
- Ernest Bednarz
- 4 minutes ago
- 3 min read
When it comes to business succession planning, there’s one question every owner should ask: Could my company run without me for 90 days?
According to Value Builder Analytics, which draws on data from over 80,000 business owners, companies that can operate independently of their owners for at least three months are twice as likely to receive an acquisition offer above 6x EBITDA.
The concept is simple: the less your business depends on you, the more valuable it becomes. But the path to get there? That takes intention, structure, and a mindset shift.
The Shift from Operator to Owner: A Real-World Example
Take Kristie Shifflette, an early master franchisee with Orangetheory Fitness. Like many entrepreneurs, Kristie wore every hat in the early days marketing, hiring, payroll, and even construction management. It worked, but only because she was working around the clock.
As her business grew to multiple locations, it became clear that her success hinged on her constant involvement. The model only worked when Kristie was the model.
That’s when she made a critical pivot: stop working in the business, and start building the business.
She began documenting every process—from pre-sale procedures to daily operations—and created detailed playbooks that allowed her studios to run without her. She also revamped compensation for studio managers, pairing modest salaries with performance-based bonuses tied to revenue and member growth. Managers were empowered to operate like mini-CEOs.
By the time she sold her business, Kristie had built 13 locations generating over $10 million annually. Some
studios were earning $2 million per year with EBITDA margins as high as 40%.
The Business Succession Takeaway
Kristie’s story delivers a powerful lesson: the less essential you are, the more valuable your business becomes.
So ask yourself:
What would break if I stepped away for 90 days?
Are your systems and processes clearly documented?
Is your team equipped - and empowered - to lead?
If any of these questions give you pause, that’s exactly where to start.
Whether you're preparing for a future sale, transitioning to the next generation, or simply looking to create more freedom in your life, these are the building blocks of a successful succession plan.
At Malahat Valuation Group, we help business owners like you uncover and enhance the value of your business - today and for the future. Whether you're years away from selling or actively planning your next chapter, we’re here to support your journey with expert business valuation, succession planning, and transactional guidance.
This spring (May, June & July) we have a special offer: The first 5 client engagements each month will receive 35% off (up to $5,000) on our services. This is a great opportunity to take the first step toward building a more valuable - and more transferable - business.
📞 Call us at (250) 929-2929 🌐 Or book online here.
Malahat Valuation Group specializes in business valuation and real estate appraisals to owners of privately owned companies and their professional advisors. An now also helping with business succession planning.
When owners need to leverage, sell or reorganize their assets, we answer the age-old question "What is it worth?".
We provide our clients and their advisors peace of mind by preparing professional valuations that stand up to scrutiny from lenders, the Courts, and the Canada Revenue Agency.
Malahat Valuation Group Inc.
(250) 929-2929
