Why pricing projects create hundreds of millions in enterprise value
Price is not just a number. It is one of the most powerful value creation levers in business — and one of the least used. While many leadership teams obsess over sales growth, operational efficiency, or cost reduction, the quiet multiplier effect of pricing is often overlooked. Yet for companies with significant revenue bases, even a small, well-executed price increase can create hundreds of millions in enterprise value.
Pricing is not just a commercial tactic. It’s a valuation strategy.
The simple math behind massive value creation.
Let’s take a straightforward example.
Imagine a company with €100 million in annual revenue and a 10% EBITDA margin. That’s €10 million in operating profit.
Now, apply a 3% price increase across the existing customer base, assuming no volume loss.
Revenue increases from €100M to
€103M.
Most of the additional €3M flows straight to the bottom line.
EBITDA goes from €10M to €13M — a 30% profit increase.
If the company is valued at a 10x EBITDA multiple, that additional €3M translates into €30 million in enterprise value. All from a 3% pricing move.
For larger businesses — say €500M or €1B in revenue — the effect is exponential. The leverage of pricing is immediate, compounding, and requires far less operational complexity than most other growth levers.
Multiples don’t just follow growth — they follow confidence
An increase in EBITDA doesn’t just lift profit. It also strengthens how the market views the company.
Well-managed pricing signals three things to investors and buyers:
Pricing power — the company has market credibility and customer loyalty.
Margin resilience — the business can protect and expand profitability even in volatile markets.
Strategic maturity — pricing is governed, disciplined, and scalable.
This often leads to multiple expansion. A company valued at 10x EBITDA before a pricing transformation may be valued at 11x or 12x after — simply because pricing clarity reflects strength. A disciplined pricing engine is a strategic asset.
When price and value are aligned, every euro or dollar in EBITDA is worth more.
Why pricing projects work so well
In hundreds of pricing projects, we see the same pattern:
80–95% of customers accept a well-executed price increase without escalation or churn.
Small percentage increases create disproportionate profit gains.
Cleaning up legacy discounts unlocks margin without touching the product or organization.
A confident, structured pricing signal strengthens positioning and trust.
Unlike many other growth initiatives, pricing has a short time-to-impact. It doesn’t require new product launches, organizational redesign, or massive marketing spend. It requires focus, data, and discipline.
Typical EBITDA uplift from structured pricing initiatives ranges from 10% to 25%. For mid- to large-sized companies, this can mean hundreds of millions in enterprise value creation within 6–18 months.
Pricing is not just commercial — it’s strategic
In many organizations, pricing sits somewhere between sales, finance, and product — but rarely gets true executive focus. This is a mistake.
Pricing is not a support function. It’s a boardroom lever.
CFOs see immediate margin impact and valuation uplift.
CEOs strengthen the company’s strategic position.
Boards and owners see a more valuable and resilient business.
Sales teams gain structure and confidence in customer conversations.
Private equity firms have understood this for years. That’s why pricing projects are often among the first strategic moves after an acquisition. The math is too compelling to ignore.
Where to start: unlocking the pricing lever
Pricing transformation doesn’t have to be complicated. The key is to start with high-impact, low-friction steps that create immediate value.
Identify undervalued segments
Look for customers with high value and outdated prices. These are often legacy accounts or contracts that haven’t been reviewed in years.Harmonize pricing across similar customers
Many portfolios contain unjustified internal price variation. Cleaning this up is one of the fastest ways to lift margin without affecting demand.Build annual indexation into contracts
Regular, transparent price adjustments anchor pricing discipline and remove the need for one-off negotiations.Remove unjustified discounts
Discounts are often given for historical or emotional reasons. A structured discount framework reclaims lost value systematically.Enable and train commercial teams
Pricing power is not just about numbers. It’s about communication, confidence, and consistency.
The valuation flywheel
A well-structured pricing strategy creates a reinforcing loop:
Price uplift increases margin.
Higher margin increases EBITDA.
Higher EBITDA raises enterprise value.
Pricing discipline improves investor confidence.
Investor confidence can expand the multiple.
Expanded multiple compounds the value effect.
It’s a virtuous cycle that starts with just a few percentage points in price.
This is why pricing is often called “the most powerful lever in business”. It’s not a slogan. It’s math, multiplied.
Common barriers — and how to overcome them
Despite its impact, many companies delay pricing initiatives.
Fear of churn: In reality, most customers accept fair, well-communicated adjustments.
Internal alignment issues: Pricing requires coordination, but once processes are in place, execution accelerates.
Lack of data clarity: Even simple segmentation and price waterfall analysis can unlock insights.
Cultural resistance: Pricing confidence is built, not given. Training and playbooks are key.
The key is to start small, execute well, and scale fast. One pilot segment can prove the business case and build momentum.
Real-world results
A managed IT services company with 1,200 customers rolled out a 4% price increase across 60% of its base.
Less than 2% of customers pushed back.
Churn remained flat.
EBITDA margin grew from 11.8% to 14.5% in twelve months.
Valuation increased by more than €50 million.
No product changes. No new customers. Just smarter pricing.
A SaaS company that harmonized pricing across its mid-market clients saw similar results: retention held at 97%, net revenue retention increased, and their valuation multiple expanded thanks to improved financial metrics.
These are not exceptions. They are patterns.
Final word: pricing is your valuation strategy
Pricing isn’t just about revenue. It’s about value — for your customers and your company.
When pricing is handled strategically, it becomes one of the few levers that can:
Drive margin growth with minimal operational friction
Expand enterprise value by hundreds of millions
Strengthen your market position and investor confidence
Create a repeatable playbook for sustainable profit growth
A well-executed 3% price increase is not just a pricing move. It’s a valuation event.
Companies that understand this don’t treat pricing as an afterthought. They put it at the core of their strategy.
Author: "Mr Pricing", Tobias Murray, CEO and Co-founder at VAERG vaerg.com
About the author. Tobias Murray helps B2B companies turn pricing into a scalable growth engine. With long-standing experience across industries, he specializes in structured, data-driven pricing strategies that consistently deliver 10–25% EBITDA uplift. As CEO of VAERG, he and his team transform fragmented pricing into a systematic, value-generating discipline.