The Return Most Pitch Decks Don’t Show You
Why a 2x on paper isn’t a 2x in your pocket
That 2x return in the pitch deck?
It’s not what actually ends up in your pocket.
Every deal sounds incredible when it shows a 2.0x multiple or a 20% annualized return. But five years from now, when the exit hits and you get that big equity check, there’s one thing standing between you and the full payout: taxes.
What Smart Investors CheckThe Math They Don’t Show You
That 2x return looks great… until you subtract long-term capital gains.
Typically 15% of your profit
Applies directly to the final equity check
Reduces your “headline” return to something lower than what was pitched
Operators often say, “Every tax situation is personal.”
And they’re right.
But that doesn’t mean you should ignore the math.
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What Investors Should Do
The smartest investors plan ahead. They don’t just evaluate deals on paper — they run the after-tax numbers too.
Here’s what to do before you sign on the dotted line:
Ask about after-tax returns. Don’t just look at gross multiples.
Factor in capital gains upfront. Build it into your projections.
Plan for strategies. Tools like 1031 exchanges or depreciation can soften the impact.
Because strong returns are great. But keeping them is better.
The pitch deck will always show the shiny numbers.
Your job as an investor is to look past them.
Don’t get blindsided by taxes five years from now.
Do the math today, and protect your returns tomorrow.
Jon
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