15X EBITDA For A Service Firm: Strategies from Ujwal Arkalgud
- Kyle Winder
- 24 minutes ago
- 2 min read
About This Episode
In this episode of Built to Sell Radio, John Warrillow sits down with Ujwal Arkalgud, who built the same company twice. Chapter one was a classic problem: a profitable, founder-heavy services firm with impressive EBITDA but a ceiling on valuation.
Chapter two began when he turned that service into a productized offering, transformed how customers bought his work, and ultimately sold for more than 15x EBITDA — roughly three times the offer he received as a simple service provider.
Listen in as you discover how to:
Treat a profitable, but capped, services business as chapter one rather than the destination
Convert bespoke consulting into a productized service buyers can underwrite and value at a premium
Use “unlimited” expert support to drive adoption and push ACV from $20,000 to more than $220,000
Kill a cash-cow services line at the right moment to create a more attractive, sellable company
Package revenue so acquirers see true recurring value instead of project-based work
Make private equity comfortable paying more than 15x EBITDA by proving the business runs without the founders
Turn a failed 12x EBITDA offer into a blueprint for a much bigger exit two years later
If chapter one of your company looks like a profitable service business with a hard cap on valuation, this conversation offers a roadmap for writing a very different chapter two.
About Our Guest
Ujwal Arkalgud
Ujwal Arkalgud is a cultural anthropologist and co-founder of MotivBase, a leading research technology platform that helps companies decode human behavior and identify emerging demand spaces.
With two decades of experience studying how people make decisions, he blends digital anthropology with AI to uncover the beliefs and tensions driving consumer behavior. His insights have guided Fortune 500 brands and have been featured in Forbes, Fast Company, and Harvard Business Review.
Definitions
Due-Diligence: This is a comprehensive appraisal of a business or investment undertaken before a merger, acquisition, or investment. It seeks to validate the information provided and uncover any potential risks or liabilities.
Earn-out: This is a financing arrangement for the purchase of a business, where the seller must meet certain performance goals before receiving the full purchase price. It reduces the buyer’s risk and aligns the interests of both parties post-acquisition.
Roll Over Investor: A rollover investor, in the context of selling a business, refers to an individual or entity that rolls some of their proceeds from the sale with the buyer. This strategy allows the seller to defer capital gains taxes and potentially leverage their expertise or resources in a new venture.
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