How Mid-Market CEOs Use AI to Lift EBITDA in 12-18 Months
- Brainz Magazine
- 3 days ago
- 5 min read
Updated: 2 days ago
Jane Jawad helps SME owners turn operational chaos into enterprise value through AI, automation and strategic dealmaking that drives 15-25% EBITA Growth and exits worth 2–3x more.
Most CEOs know they "should" be using AI. What's missing is the line between intention and profit. In established businesses, the winners don't try to boil the ocean. They connect AI directly to a handful of commercial outcomes, margin, cash, retention, operational capacity, then execute through short, disciplined pilots with clear kill points. Done properly, AI doesn't just lift EBITDA. It reduces key-person dependency, improves reporting quality, and makes performance predictable. That predictability is what sophisticated investors, lenders, and buyers actually pay for.
This approach is deliberately unglamorous. It avoids hype, focuses on what moves the numbers, and builds capability that endures. The aim isn't to become an "AI company." The aim is to run a stronger, simpler, more resilient business.
The real reason AI lifts enterprise value
Enterprise value rises when a business earns more and looks less risky. Many leadership teams obsess over the first part and ignore the second. In real transactions, the valuation multiple is often driven by perceived risk: how dependent the business is on the CEO, how explainable the numbers are, whether performance looks repeatable month after month.
AI creates value when it converts tribal knowledge into systems. It standardises decisions, improves visibility, and eliminates the defensive tap-dancing required when someone asks, "Why did margin drop?" or "What's really driving churn?"
That's the shift: from heroic firefighting to repeatable execution.
Three pressures shaping decisions now
Three forces are reshaping the mid-market landscape.
Margin squeeze and complexity. Costs rise, expectations rise, and too many businesses still run on manual workarounds and institutional memory.
AI disruption. AI has moved from buzzword to baseline expectation, but most firms have a patchwork of disconnected tools rather than a coherent strategy, so they're burning budget without seeing meaningful uplift.
Deal activity and consolidation. Whether a company plans to sell or not, the market has hardened. Capital providers and strategic partners expect better evidence, tighter reporting, and less reliance on a single irreplaceable person.
The opportunity is significant. So is the gap between companies making deliberate moves and companies waiting for clarity that won't come.
AI plays that pay
The fastest EBITDA impact comes from decisions that happen every week: pricing, renewals, forecasting, scheduling, collections, service delivery.
Protect gross margin
Margin leakage is rarely one dramatic failure. It's thousands of small decisions. Inconsistent discounting, fuzzy approval chains, limited visibility into true profitability, exceptions that calcify into policy.
AI becomes valuable when it enforces margin discipline at the point of decision. Better guidance in quoting and approvals. Early warning signs of erosion surfaced before they compounded. Standardised guardrails that protect profit without killing momentum. The win isn't "AI pricing." The win is protecting the margin while keeping pace.
Save renewals early
Retention is one of the cleanest profit levers because it protects revenue you've already paid to win. Churn risk usually becomes visible too late, when renewal becomes a hostage negotiation. AI helps when it surfaces early signals, consolidates them into a simple risk view, and prompts structured intervention before the relationship deteriorates. Fewer surprises mean less panic discounting and more predictable earnings.
Improve cash conversion
Many profitable businesses still feel cash-starved. Working capital is usually the culprit. When forecasting is weak, teams hedge. Buffers multiply, inventory swells, overtime appears, rush costs become routine. AI helps by improving demand signals and scenario planning so finance and operations operate from the same version of reality. Cash predictability reduces risk. Reduced risk lifts value.
Cut repeat admin
The best early AI wins don't replace people. They eliminate low-value work that keeps talented people trapped. Faster first drafts of proposals and client updates. Faster triage and routing of exceptions. Faster retrieval of the right information at the right moment. Cleaner handoffs between teams. Fewer "chase and check" cycles that burn hours. These wins feel mundane, which is precisely why they work. When time returns to customer experience, delivery quality, and growth initiatives, EBITDA follows.
Roadmap without a full-time chief AI officer
Most businesses don't need a dedicated AI executive. They need senior ownership and execution discipline. A practical approach starts by choosing two or three outcomes for the next 12-18 months. If the outcome can't be expressed in commercial terms, margin, churn, cash, cycle time, the initiative will drift.
Next, select use cases you can actually deliver. Start where data exists and the workflow is stable enough to improve. "Good enough now" beats "perfect in 18 months."
Then run one focused pilot with clear ROI. Six to eight weeks is often enough to see signal. Set the baseline, success threshold, and decision date before the pilot begins. If you can't stop a pilot that underperforms, you're not piloting, you're accumulating complexity.
Finally, scale what works properly. Scaling means workflow integration, training, governance, and consistent measurement month after month. That's how value becomes durable.
Deal-ready every day
Deal-readiness isn't an exit project. It's an operating standard. A deal-ready business is easier to run, more resilient under stress, and more attractive to lenders, partners, and high-quality hires. AI contributes by standardising processes, tightening reporting cadence, and reducing key-person dependency.
Investors rarely pay a premium for "using AI." They pay for what AI enables: predictable execution, controlled risk, and a management team that can operate without founder heroics.
The first three moves in 90 days
For time-constrained CEOs, the best approach is simple and high-leverage.
First, map how value flows through your business, from winning work to getting paid and identify the five places where time, money, or opportunity leaks.
Second, run one focused AI pilot with clear ROI. Choose one revenue-side use case (margin discipline, renewal protection, sales velocity) and one cost or cash use case (forecasting, scheduling, collections). Keep each narrow: one team, one segment, one region.
Third, begin deal-readiness even if a sale isn't planned. Tidy reporting, document key processes, strengthen the management bench, reduce reliance on any single person.
When those three are in motion, strategic options multiply: scaling, succession, raising capital, or a transaction.
Conclusion
You don't need every answer today. You need a deliberate first move. Start with one hour to map the top operational pain points and where time actually goes. Then launch one AI pilot that links directly to EBITDA or cash. Prove value, build confidence, scale what works.
For leadership teams that want speed without chaos, the formula remains constant: commercial outcomes, tight pilots, disciplined scaling. Build a business that's easier to run, and more valuable when it counts.
Read more from Jane Jawad
Jane Jawad, Co-founder of Centaura Group and Strategic Adviser
Jane Jawad is co-founder of Centaura Group, where she helps established SMEs unlock hidden value and prepare for high-multiple exits through AI, automation and strategic deal advisory. With nearly two decades leading transformations for major corporates, she now channels that expertise exclusively toward £10m–£75m businesses across the UK, Europe, the Middle East and Southeast Asia. Jane works with owner-led firms to eliminate founder dependency and engineer EBITDA growth that translates directly into valuation uplift. She co-founded the SME Innovation Network and writes about AI strategy and building companies buyers actually want to buy.
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