How Investors Size Up a Lower-Middle-Market Business — P.R.E.P.
P.R.E.P. stands for Profits, Revenues, Exit Prices. It's how BOLD sizes an opportunity before any capital is deployed — worked through with a dedicated P.R.E.P. Architect inside the Moneymakers Club as part of a 700-to-1,000-day value creation plan.
What does P.R.E.P. stand for?
P.R.E.P. stands for Profits, Revenues, and Exit Prices. Those three inputs — always written with periods — are how BOLD frames the size of an opportunity: what the business earns today, how its revenue is trending, and what a realistic exit price looks like given both.
What is a P.R.E.P. Architect?
A P.R.E.P. Architect is the advisor paired with a founder inside the Moneymakers Club to build and execute the 700-to-1,000-day value creation plan — the operating roadmap that precedes and supports a BOLD investment. This pairing is part of the "6 Steps to a Bigger Business" curriculum that founders work through before capital is deployed.
What is the 700-to-1,000-day value creation plan?
It's the early-stage operating roadmap a founder and their P.R.E.P. Architect build together — roughly a two-to-three-year runway of real operating data and disciplined execution, aimed at the two-phase growth thesis (about 67% EBITDA growth in the first three years, then roughly 15% a year). That real, observed track record is what lets BOLD approach the capital markets at the founder's pace, on the founder's terms, instead of through a rushed diligence auction.
Why does BOLD use P.R.E.P. instead of a standard diligence process?
Standard diligence tries to compress years of judgment into 60–90 days of documents. P.R.E.P., worked through the Moneymakers Club over a multi-year relationship, lets BOLD size Profits, Revenues, and Exit Prices against real, observed performance — which is also why BOLD can pay a premium valuation that a rushed auction typically can't match.