Capital and IC
Shareable reference
Effective multiple after remediation, not a backlog of six add-ons the hold period cannot exit.
Share: https://meridian.keyteller.com/use-cases/capital-allocation-across-ai-bets
A practical example
A fund reserved $80M for six add-ons onto Ledgerline. Remediation so the platform can absorb them is about $12M and 16 months. Entry was 10x on $8M EBITDA. The desk prices effective multiple as (price plus remediation) over adjusted EBITDA. The rewrite eats the expansion IC underwrote. Call: cut add-ons from six to two, put reserves into pricing and retention on the existing book, and do not fund a greenfield rebuild the hold period cannot exit.
What you leave with. Where follow-on capital goes, what stops, and the multiple the IC is actually underwriting.
Not this. A Jira scoring exercise or copying '560 bps of margin from AI' from the CIM. Calendar for this class of work is measured in weeks, not hours.
Related situations