Is your business ready to sell?

Check every statement that is true today

Buyers and their lenders will ask about each of these. Every unchecked box is something a buyer will either discount or ask you to fix. Nothing you check here is saved or sent anywhere.

• Can it run without you?
• If I took 30 days off starting tomorrow, sales would keep coming in.
• Someone other than me can run payroll, billing and collections.
• My team makes day to day decisions without waiting for me.
• Key customer relationships are held by my team, not only by me.
• A manager or second in command could run things for a new owner.
• Are your books buyer ready?
• I can pull three years of tax returns and P&Ls within a day.
• My P&L matches my tax returns.
• Every personal or one time expense is labeled and documented.
• All income is reported; there is no unreported cash.
• Only one owner salary is being treated as an add back.
• Is the business low risk to a buyer?
• No single customer is a large share of revenue.
• Revenue has been steady or growing for the last three years.
• How we do things is written down (processes, checklists, an owner's manual).
• My lease can be assigned, or the landlord is likely to work with a new owner.
• Key contracts, licenses and permits are current and transferable.
• Are you ready?
• I know what my business is worth today, and where that number came from.
• I know what life looks like the Monday after the sale.
• I know roughly what I need to net after taxes and fees.
• I have talked to a CPA about the tax side before signing anything.
• I know who will be on my exit team (CPA, attorney, wealth advisor, advisor).

What your score usually means

A rule of thumb, not a formal assessment.

Keep a printable copy

The same 20 questions on one page you can print, check off and share with your CPA or partner.

Where to start

Pick the one unchecked box that would hurt most if a buyer asked about it this week. Write down how it works today, and hand one piece of it to someone else.