The Roll-Up Drag Calculator prices what workflow variance costs a PE-backed healthcare platform in the middle of an acquisition roll-up. Every office you buy keeps its own way of running intake, scheduling, and billing, so hires at acquired sites ramp slower than hires at the site you already run well. Enter your acquired sites, hires per site, average salary, the ramp at your best site, the ramp at an acquired site, and your exit multiple. See the annual drift cost, the cost per hire, the drift in whole salaries, a hold-period view, and what the drift is worth at exit. Free, no login.
Annual drift cost = ((annual salary / 12) x (acquired ramp months - baseline ramp months) x (1 - average productivity during ramp)) x acquired sites x hires per site. Enterprise value impact = annual drift cost x exit multiple. The default assumes 50% average productivity, the midpoint of a linear ramp from zero to full.
Roll-up drag is the cost created when every acquired site keeps running its legacy process. A hire at a site you closed last quarter ramps slower than the same hire at your best-run site. The months of difference are unrealized work you are paying for at every acquired site, every year.
Take the per-hire ramp loss at an acquired site, which is monthly salary times ramp months times the share of output unrealized during ramp, and subtract the same figure at your best-run site. Multiply the difference by the hires across your acquired sites. For example, 3 sites hiring 12 people a year at a 65,000 dollar salary, ramping 6 months instead of 3, costs 292,500 dollars a year at 50% average productivity.
Ramp drift is a recurring operating cost, so it sits in EBITDA. Removing a dollar of it adds a dollar of EBITDA, which is worth the exit multiple in enterprise value. At a 12x multiple, 292,500 dollars of annual drift is about 3.5 million dollars of enterprise value.
No. Mettle works on non-clinical administrative workflows: intake, scheduling, billing, records, and revenue cycle. Clinical protocols are out of scope.
Yes. The calculator and the full breakdown are free, with no login required.