Exit Readiness Score

Free · No Signup

Find out how ready your business is for a sale — and exactly where to focus before going to market. Scored on the factors buyers and M&A advisors actually care about.

Exit Readiness Score

Answer a few questions about your business and get an instant readiness score — with specific guidance on where to focus before going to market.

Your Exit Score

Exit Readiness Score
Rating
Estimated Value Range
Recommended Timeline
Biggest Value Driver
Top Risk to Address
Free Introduction

Ready to Talk About Your Exit?

Whether you're 6 months out or 3 years away, our M&A advisors can help you build a plan that maximizes your exit value. Free conversation, no obligation.

Private & encrypted One specialist, not a list Response within 24 hrs No fees, ever

Talk to an Exit Advisor

Shared with one vetted specialist only — never sold, never spammed.

You're all set

A vetted specialist will reach out within 24 hours. In the meantime, explore our other free tools below.

Maximizing Your Exit Value

Most business owners leave significant money on the table when they sell — not because the business isn't valuable, but because they didn't prepare. The factors that drive sale price are knowable and fixable. The time to start is before you think you need to.

Revenue Concentration Risk
Buyers and lenders penalize customer concentration. If one customer accounts for more than 20–25% of revenue, expect either a lower multiple or deal structure that puts purchase price at risk (earnout). The fix: diversify your customer base at least 2 years before going to market.
Management Depth
A business that runs without the owner is worth dramatically more than one that depends on them. PE buyers in particular pay a premium for management teams that can operate independently. If you're the key person, start building your team and documenting your role 12–18 months before exit.
Financial Reporting Quality
Clean, consistent financials from a reputable CPA are table stakes. Buyers spend 60–90 days verifying your numbers. Audited or reviewed financials reduce diligence friction and support a higher multiple. Cash basis or poorly organized books create doubt and depress offers.
Recurring Revenue Premium
Recurring, contracted revenue is worth more than project-based revenue because it's more predictable. If you have service contracts, maintenance agreements, or subscriptions, make sure they're documented, transferable, and prominently featured in your CIM. Buyers pay premium multiples for businesses where revenue doesn't walk out the door.
The Right Timeline
Most businesses that sell well started preparing 2–3 years before going to market. That's enough time to address concentration, optimize financials, and time the sale at a moment of strength. Trying to sell during a difficult year almost always results in a lower price or a failed process.
Working with an M&A Advisor
Lower middle market M&A advisors run a confidential, structured process that creates competitive tension among qualified buyers. That competition is what drives price. A good advisor typically improves your outcome by more than the cost of their fee — for deals in the $5M–$100M range.

Exit Planning FAQ

3–5 years before you want to sell is ideal. This gives you time to address the issues buyers penalize — customer concentration, key-person dependency, financial reporting gaps, and revenue quality. Even if you're not sure you want to sell, running your business as if you're preparing for a sale makes it more valuable.

Business brokers typically handle transactions under $5M and work like real estate agents — listing businesses on marketplaces and waiting for buyers. M&A advisors run a structured, confidential process targeting strategic and private equity buyers. For deals over $5M, an M&A advisor almost always produces a meaningfully better outcome.

Not necessarily, but they help. Most lower middle market buyers accept CPA-prepared reviewed financials. Audited financials reduce due diligence time and can support a premium multiple. Cash basis or internally prepared books create skepticism and often lead to retrading — buyers lowering their offer mid-process.

An earnout is a portion of the purchase price paid after closing, contingent on hitting performance targets. Sellers dislike earnouts because the money isn't guaranteed. However, earnouts can bridge valuation gaps when there's disagreement about future performance. If you accept one, make sure metrics are clearly defined, measurable, and within your control.

Very — if done properly. A well-run M&A process uses NDAs before sharing any information, refers to the business generically in early marketing, and only discloses identity to qualified buyers. Employees, customers, and competitors shouldn't know the business is for sale until a deal is signed and closing is imminent.