THE BARATELLI INSTITUTE · Mentoring at Scale · baratelliinstitute.com
The Baratelli Institute · Mentoring at Scale

The Multiple Machine

Same profit. Wildly different price.

Two businesses earn the exact same money, and one sells for three times the other. The difference isn't the profit — it's how the business is built. Set the earnings below, then flip what's true about the business and watch the sale multiple, and the price, move. The number it prints is illustrative; the lesson is real.

$500,000

What's it like to own? Flip what's true.

Sale multiple
2.0×
What it sells for
$1,000,000
2× · a job you bought6× · a bidding war
“I'm buying myself a job here. Expect a lowball.”
Left as-is
$1,000,000
Built like this
$1,000,000

Same profit either way. The difference is what you built.

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Educational references and tools — not legal, tax, accounting, or investment advice, and not a recommendation to buy or sell any security. Consult a qualified professional about your specific situation. © 2026 The Baratelli Institute.