Owner Dependence
Owner dependence describes the extent to which customer relationships, expertise, and decisions require the owner’s personal involvement.
Owner dependence is high when key responsibilities, customer relationships, or decisions cannot readily be handled without the owner. A transition may then put knowledge or business continuity at risk.
Independent management, documented processes, and multiple contacts for key customers can reduce this risk. The calculator uses your assessment to adjust the EBITDA multiple. It does not verify how readily these responsibilities and relationships could transfer.
Owner dependence describes the extent to which customer relationships, expertise, and decisions require the owner’s personal involvement.