Contractor Economics — Stay Independent vs Join the Platform
Same company. Same owner. Two 36-month trajectories.
Two paths from the same starting point
Owner annual economics, Year 0 → Year 3| Year | Revenue | Margin | EBITDA | Owner / yr | EV |
|---|---|---|---|---|---|
| Y0 | $5.00M | 8.0% | $400K | $400K | $1.20M |
| Y1 | $5.25M | 8.0% | $420K | $420K | $1.26M |
| Y2 | $5.51M | 8.0% | $441K | $441K | $1.32M |
| Y3 | $5.79M | 8.0% | $463K | $463K | $1.39M |
| Year | Revenue | Margin | EBITDA | Owner / yr | JV / yr | EV |
|---|---|---|---|---|---|---|
| Y0 | $5.00M | 8.0% | $400K | $400K | $0 | $1.20M |
| Y1 | $6.25M | 14.0% | $875K | $638K | $238K | $8.75M |
| Y2 | $7.50M | 20.0% | $1.5M | $950K | $550K | $15.00M |
| Y3 | $7.50M | 20.0% | $1.5M | $950K | $550K | $15.00M |
Platform path follows the same maturation curve as the portfolio model (8 quarters to mature economics). EBITDA is shown after the 8.0% platform charge — it is not deducted a second time.
Year 3 outcome
Platform multipleAnnual owner economics and exit value are shown separately and never added together. Company EV is total enterprise value, not the owner's share — the legal treatment of incremental EV is To Be Finalized.
Where the difference comes from
Year 3 EBITDA, independent → platform- Marketing & demand
- Sales conversion / average ticket
- Centralized call center & dispatch
- Field productivity
- CRM / data
- Accounting / financial discipline
- Training / accountability
- AI / automation
- Reduced overhead
Split is arithmetic: revenue effect = extra revenue × independent margin; margin effect = platform revenue × margin gain. Levers are grouped qualitatively — no per-lever dollar attribution is assumed.
Owner value proposition
- Keep and protect the value you brought in on Day 1
- Participate 50% in EBITDA created above your frozen baseline
- Gain centralized infrastructure without rebuilding it alone
- Build a more institutional, less owner-dependent company
- Preserve optionality — recap, sale, rollover, or continued ownership
No exit value is promised. Outcomes depend on execution and final legal terms.
Economics formula
- Frozen baseline
- = EBITDA at joining date
- Incremental EBITDA
- = Current EBITDA − Frozen baseline
- JV distribution
- = Incremental EBITDA × 50%
- Contractor annual economics
- = Frozen baseline + 50% of incremental
Contractor sensitivity
Changes flow through the whole dashboard"Without platform" inputs are illustrative status-quo assumptions, not market data. Multiples are scenario assumptions, not guarantees.
Partner proposal letter
AI-powered · uses only the numbers aboveRevenue and EBITDA come from the starting-point sliders above. Add the rest of the profile and priorities, and the AI explains what the two paths mean for this owner.
The draft letter will appear here.