Project Beacon presents Tier 1 technical defensibility, supported by proprietary domain assets, high data gravity, and low structural exposure to third-party model providers. Audited operating workflows substantiate a credible post-close EBITDA expansion path, and the commercial and architectural posture supports the proposed entry multiple at full value. Principal diligence attention concentrates on illustrative synthetic sample built on modeled data; every figure is for format demonstration only., addressable within the Day 1–100 plan.
| Valuation Bridge | Value |
|---|---|
| Trailing Revenue | $35,000,000 |
| Baseline EBITDA (15.0% margin) | $5,250,000 |
| Baseline Enterprise Value (13.0x) | $68,250,000 |
| Recommended Entry Multiple | 13.0x (from 13.0x) |
| Adjusted Enterprise Value @ Recommended Multiple | $68,250,000 |
| Purchase-Price Discount Leverage | $0 (0.0%) |
| Day 1–100 Remediation CapEx Provision | $120,000 |
| Dimension | Profile | Score | Weight | Weighted |
|---|---|---|---|---|
| Data Gravity | 5.0 / 5.0 | 35% | 1.75 | |
| Wrapper Immunity | 4.8 / 5.0 | 25% | 1.21 | |
| Deterministic Governance | 4.5 / 5.0 | 20% | 0.90 | |
| Unit Economics | 4.5 / 5.0 | 10% | 0.45 | |
| IP & Compliance | 4.5 / 5.0 | 10% | 0.45 | |
| COMPOSITE DEFENSIBILITY SCORE → TIER 1 PROPRIETARY IP MOAT | 4.76 | |||
Derived from unit-economics & data-gravity posture.
Governance-determinism as a share of the maximum.
Inverse of wrapper immunity; higher = more exposed.
The composite reflects where Project Beacon's durability concentrates: the heaviest-weighted dimensions drive the tier outcome, while the lower-scoring dimensions mark the specific surfaces a post-close program must harden. These indices are derived from the defensibility profile itself and should be corroborated against data-room evidence.
Project Beacon's defensibility is distributed across 5 proprietary asset(s) — Data Flywheel, Model Independence, Governance Gate, Compliance Gate, EBITDA Driver — rather than a single application layer, supporting the recommended multiple.
| Asset & Dependency Role | Value & Counterfactual Impact | Replacement Cost | IC Role |
|---|---|---|---|
| Project Beacon Proprietary Data Corpus KEY-PERSON Proprietary Data Asset · COMPOUND FLYWHEEL |
Longitudinal proprietary dataset creating high data gravity and customer switching cost. Counterfactual: If removed: algorithmic precision reverts toward commodity baseline and the data flywheel stalls. |
24–36+ mo (very high) | Data Flywheel |
| Project Beacon In-House Model & Inference Stack Model / Algorithmic IP · MODEL INDEPENDENCE |
Owned model / inference path rather than a thin wrapper over third-party foundation-model APIs. Counterfactual: If removed: capability reverts to third-party API dependence, exposing margin and continuity risk. |
24–36+ mo (very high) | Model Independence |
| Project Beacon Deterministic Governance Layer Architectural IP · GOVERNANCE GATE |
Hard runtime validation gates enforcing bounded, auditable execution. Counterfactual: If removed: control evidence for governed execution and enterprise auditability materially degrades. |
24–36+ mo (very high) | Governance Gate |
| Project Beacon IP & Compliance Portfolio Legal / Compliance IP · COMPLIANCE GATE |
Invention assignments, registered IP, and certifications underpinning enterprise deployment. Counterfactual: If removed: enterprise and regulatory exposure rises and deployment friction increases. |
24–36+ mo (very high) | Compliance Gate |
| Project Beacon Automated Workflow Engine Software / Algorithmic IP · CORE EBITDA DRIVER |
Automates 2 audited operating workflow(s) into recoverable EBITDA. Counterfactual: If removed: forfeits +$2,696,880/yr of modeled post-close automation EBITDA. |
12–24 mo (moderate–high) | EBITDA Driver |
Principal IP concern: the weakest defensibility dimension is deterministic gov (4.5/5.0), the primary hardening target; IP concentration rests in 1 key-person-dependent asset(s), warranting a retention reserve.
Value creation is grounded in labor economics rather than speculative revenue synergy: automating the workflows above converts recurring burdened labor into recoverable EBITDA, net of system cost. Sequencing highest-yield workstreams first front-loads the return during the ownership period.
| Workflow | FTE | Annual Labor | Feasibility | Gross Savings | System Cost | Net EBITDA |
|---|---|---|---|---|---|---|
| Prior Authorization & Denial Appeal Triaging | 18 | $2,059,200 | 75.0% | $1,544,400 | $33,600 | $1,510,800 |
| Clinical Code Extraction & Crosswalk | 12 | $1,497,600 | 80.0% | $1,198,080 | $12,000 | $1,186,080 |
| TOTAL NET POST-CLOSE EBITDA VALUE CREATION | +$2,696,880/yr | |||||
22.7% pro-forma margin.
@8x $21.6M · @12x $32.4M.
EV created per $ of Day 1–100 CapEx.
| Node | Source Family | Origin | Substantiating Finding | Conf. |
|---|---|---|---|---|
| E-0101 | Software & AI Supply Chain (SBOM) | Git Repository AST Scan & Snyk Dependency Manifest 05. Engineering / 05.01 Source Repositories · Repository 'beacon-clinical-engine' Commit f48a29b #e99a18c428cb |
Core inference executed on VPC-isolated Mistral weights with zero OpenAI/Anthropic API runtime dependencies. | Illustrative 96% |
| E-0102 | QoE / Financial Source of Truth | 12-Month Itemized AWS & Infrastructure Invoices 03. Technology / 03.02 Cloud Infrastructure Bills · Invoice AWS-2026-07-3392 #2c26b46b68ff |
Average trailing 12-month GPU compute invoice $2,900/month; unit cost $0.238 per prior authorization. | Illustrative 95% |
| E-0103 | Data Rights, Lineage & IP Transferability | Data Lineage Manifest & Customer DPA Rights Audit 07. Data Architecture / 07.01 Data Provenance · Data Catalog pp. 12-44 #7f83b1657ff1 |
4.2M historical clinical encounter records verified; 100% of DPAs grant de-identified continuous model training rights. | Illustrative 97% |
| E-0104 | Sector Regulatory & Compliance Trajectory | SOC2 Type II Examination Report & HIPAA Compliance Review 08. Legal & Compliance / 08.01 Security Reports · Schellman SOC2 Type II Report pp. 4-18 #c672b8d1ef56 |
Zero exceptions identified; 100% of customer BAAs permit de-identified telemetry aggregation for ongoing model training. | Illustrative 96% |
| E-0105 | AI TEVV & NIST Ground-Truth Evals | NIST AI RMF 1.0 Golden Benchmark Validation Suite 05. Engineering / 05.04 QA & Benchmarks · Test Run Report 'BENCH-2026-08-01' #a591a6d40bf4 |
10,000 blind payer scenarios evaluated with zero policy hallucinations; hard state validation passed in 100% of cases. | Illustrative 96% |
| E-0106 | Workflow Operating Telemetry | Snowflake Event Lake — 12-Month Prior Auth Telemetry Logs 04. Operations / 04.01 Telemetry & Case Queues · Table 'fact_prior_auth_intake_2025_2026' #4a5a543f8bfd |
146,200 completed prior authorizations; average handle time 7.8 minutes; human intervention in 11.2% exception cases. | Illustrative 94% |
| E-0107 | Workflow Operating Telemetry | JIRA Service Management & Epic EHR Event Stream 04. Operations / 04.02 Denial Queues · Table 'fact_denial_appeals_metrics' #8d969eef6eca |
88,400 appeal packets generated; closed-loop overturn success 84.6% vs 61.2% industry baseline. | Illustrative 93% |
| E-0108 | Data Rights, Lineage & IP Transferability | Customer MSA Cohort Matrix & Retention Schedule (2022-2026) 06. Commercial / 06.01 Customer Contracts & MSAs · Schedule 06.01-A 'Retention_Cohorts' #5e884898da28 |
96.4% Gross Revenue Retention; 118.2% Net Revenue Retention; 88% of ARR under 3-year minimum commitments with 3.5% CPI clauses. | Illustrative 96% |
| E-0109 | Security, SOC2 & SLA Resilience | Coalfire Network Penetration Test & Disaster Recovery Audit 08. Legal & Compliance / 08.03 Penetration Tests · Penetration Report pp. 2-24 #9f86d081884c |
Zero critical or high vulnerabilities identified; RTO demonstrated at 1.0 hour; daily immutable cross-region backups verified. | Illustrative 97% |
| E-0110 | Software & AI Supply Chain (SBOM) | Engineering Org Chart, IP Assignments & Git Ownership Map 09. Organization / 09.01 Engineering Team · Roster Schedule 09.01 #5e884898da28 |
100% of engineering staff signed comprehensive IP assignment agreements; top committer represents 28% of core commits. | Illustrative 94% |
| E-0111 | QoE / Financial Source of Truth | FY2025-26 Audited Financial Statements & QoE Schedule (BDO) 02. Financials / 02.01 General Ledger · Sheet 'P&L_Consolidated' L22:L45 #e3b0c44298fc |
Adjusted TTM EBITDA validated at $5,250,000 on net revenues of $35,000,000 (15.0% margin). | Illustrative 98% |
| E-0112 | Market, Win/Loss & Transaction Comps | Historical M&A Integration Post-Mortem & Architecture Runbook 10. Strategic & M&A / 10.01 Acquisition Integrations · Integration Report 'Project Apex & Project Pulse' #4a5a543f8bfd |
Two previous practice management add-ons fully integrated onto unified data lake within 3.5 months post-close. | Illustrative 93% |
| Category | Expected Artifact | What It Substantiates | Status |
|---|---|---|---|
| A · Architecture | System architecture spec & model catalog | Wrapper-immunity / governance validation | REQUIRES DATA-ROOM ACCESS Not yet substantiated — required to close this diligence line. |
| B · Codebase | Repository access & dependency manifest | AST audit, license & concentration scan | REQUIRES DATA-ROOM ACCESS Not yet substantiated — required to close this diligence line. |
| C · Data Provenance | Data-rights, licensing & consent lineage | Data-gravity substantiation | REQUIRES DATA-ROOM ACCESS Not yet substantiated — required to close this diligence line. |
| D · Model TEVV | Benchmark harness & confusion matrices | Accuracy / hallucination verification | REQUIRES DATA-ROOM ACCESS Not yet substantiated — required to close this diligence line. |
| E · Security | SOC 2 / pen-test / infra attestations | Governance & compliance posture | REQUIRES DATA-ROOM ACCESS Not yet substantiated — required to close this diligence line. |
| F · Legal & IP | Invention assignments, patents, licenses | IP-compliance substantiation | REQUIRES DATA-ROOM ACCESS Not yet substantiated — required to close this diligence line. |
| G · Talent | Org chart & key-person concentration | Retention-reserve sizing | REQUIRES DATA-ROOM ACCESS Not yet substantiated — required to close this diligence line. |
| H · Financial / QoE | GL, payroll & quality-of-earnings | Financial baseline & value-creation math | FROM INPUTS Baseline figures consumed by the engine; full QoE reconciliation pending. |
| I · Operational Telemetry | Production workflow & cohort logs | Labor economics & retention | REQUIRES DATA-ROOM ACCESS Not yet substantiated — required to close this diligence line. |
| J · Platform | API gateways & integration specs | Bolt-on / interoperability readiness | REQUIRES DATA-ROOM ACCESS Not yet substantiated — required to close this diligence line. |