The method

Business sale readiness: eight areas buyers examine.

Buyers and their advisers examine how the business earns its money, operates and transfers to a new owner. I organise that work into eight areas, each scored 1 to 5. The findings behind the total guide the preparation.

Below is what each test asks, common gaps and examples of useful evidence. These examples introduce the method; they are not the full scoring rubric. The Review applies the scoring anchors and override rules to your records. The priorities depend on risk, cost, time and the likely buyer.

Sale-readiness scoreExample

1Owner dependence2/5
2Earnings quality3/5
3Lease4/5
4Staff2/5
5Systems3/5
6Customer concentration4/5
7Compliance3/5
8Growth story2/5

Total23 / 40Preparation gaps

An example scorecard, not a result. Every business is scored the same way.

Explore the eight areas

Choose a question, or work through them in order.

Test 1 of 8

Owner dependence

Does the business run for a month without you?

What a buyer finds, too often

The owner is in every sale, every supplier call and every hire. The buyer is paying for a job, not a business.

Evidence of strong preparation

A named second-in-command runs the month. The owner's diary shows strategy, not operations, and the buyer can see it.

Why it matters to a buyer

A buyer needs to understand the cost of replacing your work and the risk of losing knowledge or relationships. If your continued involvement is a condition of sale, this test is capped at 2 in the professional Review.

How to reduce owner dependence →

Test 2 of 8

Earnings quality

Will a buyer's accountant accept the profit figure?

What a buyer finds, too often

Year-end accounts only, 'one-off' costs that happen every year, working capital nobody has looked at.

Evidence of strong preparation

Monthly management accounts that reconcile to the annual accounts, every adjustment supported by a document, a working-capital figure that holds.

Why it matters to a buyer

The earnings definition must match the multiple. The Review shows earnings before owner pay and after a market replacement cost for every owner role; an unsupported adjustment can change the range.

Preparing an earnings adjustments schedule →

Test 3 of 8

Lease

Can the premises transfer with suitable tenure?

What a buyer finds, too often

Under two years to run, no right of renewal, an assignment clause that says 'at the landlord's discretion'.

Evidence of strong preparation

Term plus renewals that outlast a buyer's lending, assignment pre-cleared in writing with the landlord, rent at market.

Why it matters to a buyer

Tenure, renewals and transfer requirements can affect continuity and finance. Ask your lawyer to check the documents and required consents. If you own the premises, document the occupancy terms you propose to offer.

Gather the lease and renewal evidence →

Test 4 of 8

Staff

Are the people on paper, and would they stay?

What a buyer finds, too often

Unsigned or old contracts, verbal bonus deals, leave liabilities unknown, the best person with no restraint and no reason to stay.

Evidence of strong preparation

Current signed agreements, leave liabilities checked with the accountant, and key roles and the implications of a change of owner reviewed with an employment adviser.

Why it matters to a buyer

Missing agreements and unclear liabilities make it harder to assess staff retention and the cost of taking over.

Prepare the employment agreement register →

Test 5 of 8

Systems

Could a new owner run it from the manual?

What a buyer finds, too often

Processes in the owner's head and a shared drive nobody can navigate. Software licensed in a personal name.

Evidence of strong preparation

An operations manual a competent manager could run from on day one, software in the company's name, procedures that match what actually happens.

Why it matters to a buyer

Documented processes help explain how trading can continue after you leave. A manual becomes useful evidence when another person can use it successfully.

Gather operations and systems evidence →

Test 6 of 8

Customer concentration

Where is the revenue concentrated?

What a buyer finds, too often

One customer over a third of revenue, nothing signed, and a relationship that belongs to the owner personally.

Evidence of strong preparation

A diversified customer base, with key relationships documented and held by staff. Contracts help a buyer assess risk but do not remove concentration.

Why it matters to a buyer

Check individual customers, related customers, channels, regions and customer types. In the professional Review, a region, channel or customer type above 50% caps the test at 3; above 75% caps it at 2. Contracts and continuity still need examination.

Understanding customer concentration risk →

Test 7 of 8

Compliance

Is everything current, and in the right name?

What a buyer finds, too often

Expired consents, health and safety 'in progress', a trade licence or registration in the owner's personal name, supplier contracts with clauses nobody has read.

Evidence of strong preparation

Consents, licences and registrations current and in the company's name, health and safety documented and practised, every supplier contract read and able to pass to a new owner.

Why it matters to a buyer

A missing permission or a key supply agreement that cannot transfer may prevent a sale. The Review scores the weaker of compliance and supply transferability, and checks the conditions of sale separately.

Gather licences and compliance records →

Test 8 of 8

Growth story

Does the trading record support the opportunity?

What a buyer finds, too often

'There's lots of potential.' No numbers, no plan, nothing the buyer can test.

Evidence of strong preparation

Three full years and current trading support the story, with specific, costed opportunities and evidence behind the assumptions.

Why it matters to a buyer

The Review examines trading history as well as future plans. A documented sector-wide shock is considered against pre-shock trading; a normal downturn is not automatically treated as a one-off.

Document the growth opportunity →

Beyond the score

The conditions a sale depends on.

The paid Review checks these separately. A strong operating score cannot clear a missing consent or an unresolved ownership question.

Consents, premises, tax, IP and brand, security and debt, related-party terms, stock, customer contracts and licences.

Each relevant condition is recorded as passed, fixable before listing, needing more time, or failed. Your qualified advisers clear the professional matters. The fix list records what to fix, disclose or price in, with owners and dates.

The professional Review

A verdict needs evidence.

The Review uses the eight tests, conditions of sale and supporting records together. The free readiness check organises your own answers; it cannot issue a professional go-to-market verdict or establish value.

Verdict	What it means
Ready to list now	30 or more, no test at 1, fewer than three tests at 2 or below, nothing open, no Timing items and no provisional scores.
Ready in 2 to 6 months with the Exit Programme	Conditions to clear first. Items needing 6 to 12 months are disclosed and priced in.
Ready in 6 to 12 months, or list now disclosing and pricing in	30 or more, no tests at 1 and nothing to clear, but one or more Timing items.
Not yet	Any failed condition, three or more tests at 1, or a total under 16. Longer-term work may be needed before an Exit Programme.
Held	More than two provisional scores. A failed condition still takes precedence as Not yet.

If a buyer is already at letter of intent (LOI), no Exit Programme is offered. The fix list goes to the lawyer and accountant acting on the deal.

A conversation first

Where would yours land?

The free readiness check explores the eight areas and suggests practical next steps. It does not verify documents or the conditions of sale.

Take the readiness check Or request a free call