PORTCO TECHNICAL DILIGENCE DELIVERABLE // CLIENT ACCESS REPOSITORY

Investment Committee Technical Diligence Memo

CLEAR AI Method™ // Fiduciary Architecture & Value Creation Underwriting
CONFIDENTIAL // IC EYES ONLY
Target Deal
Project Beacon
Lead Sponsor
CLEAR AI Sample
Target Sector
Healthcare RCM Platform (Synthetic Illustrative Sample)
Audit Vector
Vector A (Pre-Acquisition Technical Diligence)
INVESTMENT COMMITTEE EXECUTIVE DETERMINATION TIER 1: PROPRIETARY IP MOAT
PROCEED — FULL AI MULTIPLE JUSTIFIED
Project Beacon demonstrates TIER 1 technical defensibility (4.76/5.00) supported by proprietary domain assets, longitudinal telemetry data, and hardened architectural governance with minimal third-party API exposure. The diligence identified 5 material proprietary assets, including 5 strategically critical components driving core workflow automation and high customer switching barriers. Audited operating workflows establish +$2.70M in annual post-close EBITDA expansion (+770 bps margin lift). Strong commercial stickiness and compound data gravity support the proposed 13.0x entry multiple. Principal risks are concentrated in illustrative synthetic sample built on modeled data; every figure is for format demonstration only., addressable under the Day 1–100 value creation plan.
Recommended Entry Multiple
13.0x EBITDA (13.0x)
Purchase Price Discount Leverage
-$0
Net Post-Close EBITDA Added
+$2,696,880 / yr (+770 bps)
1. Defensibility Audit & Comparative Moat Stress-Test CLEAR Composite: 4.76 / 5.00
Moat Spectrum: Tier 3: Wrapper Risk (<3.20) Tier 2: Niche Utility (3.20–4.19) ★ TIER 1: PROPRIETARY IP MOAT (4.76) ★
OUTPERFORMS PEER BENCHMARK (+1.81 pts)
Comparative Defensibility Radar TARGET VS PEER MEDIAN
💡 IC Radar Takeaway: Tier 1 Defensibility confirmed (4.76/5.00). Target demonstrates high wrapper immunity and proprietary data gravity. Full software multiple justified.
5-Dimension Empirical Evidence & Stress-Test Matrix EVIDENTIARY AUDIT
Dimension & Weight Assessed Capability & Risk Tested Score Moat Status
Data Gravity
Weight: 35%
Proprietary data depth & customer switching cost
Stress Test: Foundation Model Disintermediation
5.0 / 5.0 Proprietary
Wrapper Immunity
Weight: 25%
Model independence vs. third-party API reliance
Stress Test: Model Provider Commoditization
4.8 / 5.0 Proprietary
Deterministic Gov
Weight: 20%
Runtime governance, validation & auditability
Stress Test: Hallucination & Policy Liability
4.5 / 5.0 Proprietary
Token Unit Economics
Weight: 10%
Inference / compute cost structure at scale
Stress Test: Inference Volume Inflation
4.5 / 5.0 Proprietary
IP & Compliance
Weight: 10%
IP ownership, licensing & certification posture
Stress Test: Open-Source Contamination & Mandates
4.5 / 5.0 Proprietary
2. Proprietary IP & Strategic Asset Register Top 5 Strategic Assets Shown // 5 Material Assets Identified
5
Material Assets
5
Strategically Critical
5
>24 Mo Replicability
100%
Clean Ownership
2
Revenue Support
1
Key-Person Exposed
Strategic IP Asset IP Class & ISD Structural Role Value Proposition & Counterfactual Impact Estimated Reconstruction Cost IC Relevance
Project Beacon Proprietary Data CorpusKey-Person Proprietary Data AssetCOMPOUND FLYWHEEL Longitudinal proprietary dataset creating high data gravity and customer switching cost.
ISD 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 IPMODEL INDEPENDENCE Owned model / inference path rather than a thin wrapper over third-party foundation-model APIs.
ISD 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 IPGOVERNANCE GATE Hard runtime validation gates enforcing bounded, auditable execution.
ISD 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 IPCOMPLIANCE GATE Invention assignments, registered IP, and certifications underpinning enterprise deployment.
ISD 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 IPCORE EBITDA DRIVER Automates 2 audited operating workflow(s) into recoverable EBITDA.
ISD Counterfactual: If removed: forfeits +$2,696,880/yr of modeled post-close automation EBITDA.
12–24 mo (moderate–high) EBITDA Driver
Compound Moat Coupling: Proprietary Domain IPProprietary Data CorpusDecision EngineWorkflow Labor RecoveryCustomer Switching Cost & Lock-In ↺
CLOSED-LOOP SYSTEM
💡 Investment Committee Strategic IP Thesis & Key-Person Synthesis:
Core Value Proposition: 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.

Talent & Concentration Risk: 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.
3. Post-Close 100-Day EBITDA Value Creation Bridge Net EBITDA Lift: +$2,696,880 / yr
Floating-Bar EBITDA Waterfall ($M) PRO-FORMA BRIDGE
💡 IC Waterfall Takeaway: Identified +$2.70M/yr in net EBITDA expansion across audited workflows, lifting baseline margin by +770 bps.
Workflow Labor Pool Feasibility
Workflow NameFTEsBurdened RateFeasibilityNet Lift
Prior Authorization & Denial Appeal Triaging 18 FTEs $55/hr 75% Feasible +$1,510,800
Clinical Code Extraction & Crosswalk 12 FTEs $55/hr 75% Feasible +$1,186,080
*Includes $120,000 Day 1-60 State Machine Remediation CapEx.
4. 5-Year Exit Enterprise Value Sensitivity vs. Entry Basis Entry Purchase Basis: $68.25M (13.0x)
Exit Multiple Scenario Pro-Forma EBITDA ($7.95M) Gross Exit EV Entry Purchase Basis Net Equity Value Created (Net of $120k CapEx)
Multiple Compression (11.0x) $7.95M $87.42M -$68.25M +$19.05M
Multiple Maintenance (13.0x Base Case) $7.95M $103.31M -$68.25M +$34.94M
Multiple Expansion (15.0x Target Exit) $7.95M $119.20M -$68.25M +$50.83M
5. Market Defensibility & External Evidence Calibration M&A Classification: Platform Asset
Commercial & Structural Resilience Telemetry
Pricing Power Multiplier:1.950Derived from data-gravity & unit-economics scores
Structural Business Resilience:0.900Derived from deterministic-governance score
Competitive Pressure Risk:3.0%Inverse of wrapper-immunity score
M&A Integration Synergy:Requires VDRPlatform & integration diligence pending
Primary Operational Risk & Remediation Plan
Identified Risk Factor: Illustrative synthetic sample built on modeled data; every figure is for format demonstration only.

Day 1–60 Governance Action: Deploy local model checkpoint caching and automate Human-in-the-Loop exception routing to lock in pro-forma gross margins past 75%.
📎 Atomic Evidence Ledger & Traceable Provenance Graph
10 Institutional Source Families // Reconciled from VDR, General Ledger & Production Telemetry
VERIFIED AUDITABLE DAG
Node ID Source Family Document / Origin Substantiating Evidence Data Confidence
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%
🔍 Backward Claim Resolution DAG Traces (IC Verification Paths):
1. Value Creation EBITDA Bridge: Net EBITDA Lift ← Feasible Workflow Automation ← Reconciled Burdened Labor ← Case Volume & AHT Telemetry ← [E-0112, E-0115, E-0119, E-0124]

2. Baseline Multiple Justification: Entry Multiple ← Customer Retention Cohorts ← M&A Transaction Comps ← Regulatory Mandates ← [E-0187, E-0220, E-0210]
100-Day AI Potential
No IC-ready opportunities yet. The 100-Day AI Potential engine has not yet produced any opportunity that has cleared CLEAR validation and human adjudication for this deal. This section will populate once opportunities reach IC_READY status.
CLEAR AI Method™ Diligence Engine v7.6 (Proprietary Asset & Evidence Ledger Edition)
Clear Sight Designs // Dallas, Texas
Preston McCauley
Founder & Principal Systems Architect