Business exit readiness assessment for advisors

Exit readiness is how prepared a business is for a sale or transition: reliable financial reporting, low dependence on the owner, documented customers and contracts, organized operating records, and a clear transaction plan. This ten-question assessment gives a preliminary score, the missing items and a prioritized checklist for advisors.

Inputs

Ten questions: Two per dimension, each worth 0, 5 or 10 points.
Not sure: Kept as unknown, scored 0 and listed as a missing preparation item.

Outputs

Preliminary readiness score: Out of 100.
Dimension breakdown: Points out of 20 per dimension.
Missing preparation items: Every item not at full marks.
Advisor report: Downloadable text summary.

How it is calculated

First option 0 points, second 5, third 10. Bands: 75–100 Well prepared, 45–74 Partly prepared, 0–44 Early preparation.

Financial reporting: Are monthly financial statements produced on time?
Financial reporting: Are statements reviewed or audited by an outside accountant?
Owner dependence: Could the business run for a month without the owner?
Owner dependence: Are key customer relationships held by people other than the owner?
Customers and contracts: Are customer contracts signed, current and filed?
Customers and contracts: Is revenue concentration known (share from top 5 customers)?
Systems and records: Are procedures documented so new staff can follow them?
Systems and records: Is there an inventory of operational records (systems, years, owners)?
Transaction preparation: Is there a list of documents a buyer's diligence team would request?
Transaction preparation: Has the owner set a timeline and goals for an exit?

An operational data inventory (systems, record types, years held, owner) is included as a preparation item because buyers and diligence teams ask where operating records live.

Worked example (illustrative)

Illustrative only: a company with monthly closes (10), compiled statements (5), heavy owner dependence (0, 0), mostly filed contracts (10), rough concentration figures (5) and no records inventory (0) scores in the "Partly prepared" band, with owner dependence first on the checklist.

Assumptions and limitations

Self-reported and preliminary; not a valuation or legal advice.
SourceX does not claim that a data license increases a company's sale valuation.
Work with your M&A, legal and tax advisors on any transaction.

Questions and answers

What is business exit planning?

Preparing a company and its owner for a sale, succession or other transition, ideally years before the event.

What do buyers look for first?

Reliable financials, low owner dependence, documented contracts and organized operating records.

Why is an operational data inventory included?

It shows where the company's records live and who maintains them, which speeds diligence.

Does data licensing raise my sale price?

This tool makes no such claim. Licensing is a separate decision with its own terms.

How should advisors use the report?

As a conversation starter and checklist, not a formal readiness opinion.

What does provisional mean?

Some answers were Not sure or left blank, so the score is incomplete.

Sources

Content reviewed October 9, 2026 by the SourceX Partnerships Team. Results are calculated in your browser; nothing you type is stored.

Business exit readiness assessment

Ten questions