CEO Roundtable Summary: EBITDA Leakage and Its Impact on Your Company
Date: CEO Roundtable Discussion
Facilitator: David Boim
Panelists: Shane Glavin, Dan Pinkham, Ron James, Cole Strandberg, Giorgio Andonian, and participating CEOs
Topic: Identifying, understanding, and eliminating EBITDA leakage to improve profitability, cash flow, and company valuation.
Executive Summary
The central theme of the discussion was simple:
Most companies are leaking EBITDA, and the majority of CEOs cannot see where it is occurring.
The panel emphasized that EBITDA leakage is rarely caused by a single catastrophic event. Instead, it is usually the accumulation of small inefficiencies, poor visibility, inadequate reporting, inconsistent execution, underutilized assets, missed tax opportunities, ineffective training, and emotional decision-making.
Several panelists reinforced that:
Leakage is often hidden in plain sight.
If leaders could clearly see the problem, most issues would be relatively straightforward to address.
Improving EBITDA often requires no additional headcount or capital investment.
Every dollar of EBITDA improvement increases enterprise value through valuation multiples.
Key Takeaways
1. EBITDA Leakage Is Primarily a Visibility Problem
Shane Glavin described EBITDA leakage as fundamentally a lack of visibility:
"EBITDA leakage equals lack of visibility."
Organizations frequently operate based on:
Gut instinct
Incomplete financial information
Delayed reporting
Operational assumptions
Without timely and actionable data, leaders unknowingly allow profits to erode.
2. Small Problems Become Large Financial Losses
The panel repeatedly stressed that leakage often comes from small inefficiencies.
Examples included:
Operational bottlenecks
Dan Pinkham described a mining operation that installed a crusher capable of processing twice the capacity of the surrounding production system.
Result:
Excess capital investment
Reduced throughput
Increased maintenance costs
Significant EBITDA loss.
Idle capacity
A manufacturing company invested in new equipment but failed to hire enough operators.
Result:
Equipment sat unused
Capital investments failed to generate expected returns.
Missing billable revenue
One multi-location company failed to invoice for services that insurance companies would reimburse.
Result:
15–30% of potential revenue was never collected.
3. Weekly Reporting Beats Monthly Reporting
One of the strongest themes involved financial reporting cadence.
Shane Glavin argued that relying solely on monthly financial statements creates a competitive disadvantage:
"You really need weekly reporting."
Recommended reporting tools included:
Weekly flash reports
KPI dashboards
Customer profitability reports
Gross margin reporting by client
Scorecards by employee and location
Real Example: EBITDA Improvement Through Visibility
A staffing company generating $15.8 million in revenue improved performance by implementing enhanced reporting systems.
Results:
EBITDA increased from 1.6% to 4.6%
EBITDA dollars increased by approximately $500,000 annually.
4. Every Dollar of EBITDA Has a Multiplier Effect
Investment bankers Cole Strandberg and Giorgio Andonian emphasized that:
A dollar of EBITDA is not worth just one dollar.
Because businesses are valued using EBITDA multiples:
$100,000 EBITDA improvement at a 5× multiple adds $500,000 of value.
$500,000 EBITDA improvement can add several million dollars in enterprise value.
5. Clean Financials Increase Valuation
The panel highlighted that poor financial reporting creates uncertainty.
Potential acquirers ask:
"If we can't trust the basics, what else can't we trust?"
Consequences include:
Lower valuation multiples
Extended diligence periods
Delayed transactions
Missed market timing opportunities
Case Study: Doubling Company Value in Six Months
An entrepreneur received an acquisition offer.
Instead of selling immediately, advisors recommended:
Cleaning up financial reporting
Improving margins
Hiring stronger financial leadership
Outcome:
Company value doubled within six months.
6. Tax Strategies Represent Hidden EBITDA Opportunities
Ron James discussed overlooked opportunities including:
Research & Development Tax Credits
One fintech company recovered:
Nearly $1 million from previously unclaimed credits.
Tariff Refunds
Companies importing products may qualify for substantial recoveries.
The panel noted that many organizations remain unaware of these opportunities.
Cost Segregation
Accelerated depreciation strategies can significantly improve cash flow.
Workforce Development Grants
Shane Glavin noted that billions of dollars remain unused annually.
Typical organizations may qualify for:
$100,000+ in grant funding annually.
7. Standardization Drives Profitability
Dan Pinkham described a manufacturer operating seven production lines.
The company lacked standardized procedures for product changeovers.
Result:
Two hours of lost productivity per line each day
Thousands of lost production hours annually.
Simply implementing SOPs recovered capacity equivalent to adding a significant portion of another production line.
8. Emotional Decision-Making Reduces EBITDA
Shane Glavin emphasized that improved reporting reduces emotionally driven decisions.
Examples included:
Retaining underperforming employees
Avoiding difficult staffing changes
Delaying operational improvements
As he stated:
"The numbers don't lie."
9. Training Is an EBITDA Strategy
One of the strongest discussions centered around employee development.
David Boim stated:
"Training without testing is orientation."
Key concepts included:
Train consistently.
Test competency.
Measure outcomes.
Hold people accountable through scorecards.
CEO Success Story
Participant Adam Spencer shared his experience:
Results achieved:
Revenue: approximately $5 million
EBITDA improved from 8.5% to 19.5%
Projected EBITDA: 22%
The primary drivers were:
Employee scorecards
Clear expectations
Ongoing training.
Major Areas of EBITDA Leakage Identified
Category Examples
Financial Visibility Delayed reporting, weak KPIs
Operational Inefficiency Bottlenecks, downtime, idle capacity
Revenue Leakage Underbilling, inconsistent pricing
Workforce Performance Lack of scorecards, inadequate training
Tax Strategy Unclaimed credits and incentives
Process Variation Lack of SOPs
Staffing Decisions Wrong people, emotional retention
Capital Allocation Misaligned investments
Outsourcing Opportunities High-cost functions performed inefficiently
Exit Preparation Poor financial readiness
Discussion Questions for CEOs
The roundtable encouraged leaders to ask themselves:
Where might profits be leaking without my knowledge?
What KPIs am I reviewing weekly?
Do I have visibility by customer, employee, and location?
Are we consistently billing for all work performed?
Do our employees have measurable scorecards?
Are we testing training effectiveness?
Have we explored available tax incentives and grants?
Could stronger financial reporting improve valuation?
Final Thought
The overarching message of the session was that EBITDA improvement often does not require:
New products,
More customers,
Additional headcount, or
Large capital investments.
Instead, it requires leaders to identify and address the hidden inefficiencies already present within the business.
As David Boim challenged the group:
"What would it mean to your organization to add EBITDA without adding headcount and cost?"
For many organizations, the answer could fundamentally change profitability, cash flow, and enterprise value.
