The Denominator Audit™
The number your broker isn’t tracking—and what it’s actually costing you.
The Denominator Shift
Healthcare as % of Revenue
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The number you’re tracking
Healthcare as % of After-Tax Profit
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The number that matters
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Enterprise Value Impact
Fixing this one cost line could add:
At 4.0x EBITDA
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At 4.5x EBITDA
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No new customers. No price increases. No reduction in coverage.
Just one cost line—optimized.
The Business Value Impact
Fixing this one cost line could add:
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In Enterprise Value at Exit
How: –
Estimated Annual Savings (25% reduction)
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Recurring EBITDA Improvement
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Valuation at 4.0x EBITDA
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Valuation at 4.5x EBITDA
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Your Numbers
Annual Revenue
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Net Profit Margin
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After-Tax Net Profit
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Annual Healthcare Spend
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Employees Covered
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Does this number surprise you?
Most business owners have never seen healthcare expressed as a percentage of profit. If your number is above 50%, you have a structural problem—not a pricing problem.
Route Three Life Health Disability Inc.
Methodology based on JAMA Health Forum, Crowe RCA, RAND, and industry valuation multiples
