Worth More

Built to Sell Readiness

The checklist we use to evaluate whether a business is worth more to a buyer — and what to fix first if it's not.

The businesses that sell for the most are the ones that don't need to sell at all. The same things that make a business valuable to a buyer are the things that make it a great business to own. Check every item that's true for your business today.

Financial Clarity

0 / 6

Clean, auditable books (GAAP or close to it)

Buyers will tear through your financials. Messy books kill deals.

3 years of consistent, growing revenue

Buyers want a trend, not a spike.

Gross margins you can explain and defend

By product, service, and customer. Not just the blended number.

Owner compensation normalized and documented

Buyers will adjust for this. Make it clean and defensible.

No off-the-books deals or handshake arrangements

Anything informal becomes a liability during diligence.

Working capital is healthy and predictable

If the business needs a cash injection to run, that's a problem.

Why this matters: Financial clarity is table stakes. No buyer will make an offer if they can't trust your numbers. This is where most deals stall or die.

Operational Independence

0 / 5

Business runs without the owner every day

If you are the business, nobody's buying. They'd just be hiring you.

Key processes documented, not tribal knowledge

SOPs and playbooks that don't live in one person's head.

Management team operates independently

Buyers want a team that stays after you leave.

Customer relationships are company owned

If your biggest clients call your cell phone, that's a risk.

No single point of failure in operations

One key person, one key vendor. Concentration risk kills value.

Revenue Quality

0 / 5

Recurring or repeatable revenue

Recurring revenue gets the highest multiples. Every time.

No single customer over 15% of revenue

Customer concentration lowers your valuation fast.

Diversified revenue streams

Multiple products, services, or verticals reduce risk for buyers.

Pricing power and clear value proposition

Can you raise prices without losing customers? That's pricing power.

Sales pipeline is documented and predictable

Buyers want to see where the next 12 months comes from.

The multiplier effect: Recurring revenue with low customer concentration and strong margins can double your valuation multiple. These three factors together are the biggest lever you have.

Legal & Compliance

0 / 5

Contracts, leases, and agreements are current and transferable

Non-assignable contracts are deal breakers in diligence.

IP is documented and protected

If you built something unique, make sure you legally own it.

No pending litigation or regulatory issues

Buyers will find everything. Clean it up before they look.

Employee agreements (non-competes, NDAs) in place

Especially for key employees who hold client relationships.

Tax filings current and clean for last 3 years

Your CPA should confirm this is buttoned up.

Growth Story

0 / 4

Clear, believable growth plan for 3 to 5 years

Buyers buy the future. Your story needs to be credible.

Market tailwinds or competitive advantages you can articulate

Why will this business keep winning? That's the story buyers pay for.

Expansion opportunities the owner hasn't pursued

New markets, products, geographies. Leave something on the table.

Technology or systems that scale without proportional cost

Scalable infrastructure means more profit on every new dollar.

Readiness Score

0 / 25

Check the boxes above to see your readiness score.

/ 6

Financial Clarity

/ 5

Operational Independence

/ 5

Revenue Quality

/ 5

Legal & Compliance

/ 4

Growth Story

20 to 25: Exit ready.

Your business is in great shape for a sale. Focus on timing and finding the right buyer.

14 to 19: Getting close.

Real gaps that could cost you 20 to 40% of your valuation. Fix them now while you have time.

8 to 13: Work to do.

A buyer would see too many risks. Most are fixable in 12 to 18 months with the right plan.

Under 8: Build first, sell later.

Focus on the fundamentals. Make it a business that could sell, even if you never plan to.

Remember: The goal isn't just to sell. It's to build a business worth buying. The same things that attract a buyer make your business more profitable, less stressful, and more valuable every year.

Want help getting exit ready?

We'll evaluate your readiness and build a plan together.

Let's Talk