Exit Valuation Drivers Checklist
The 12 Factors That Determine What Buyers Will Pay
Check the items that apply to your business. Your score updates automatically.
Why this matters: Buyers don't just pay for revenue. They pay for risk-adjusted earnings. A business with strong fundamentals across these 12 drivers can command 1-3x higher multiples than a similar business with weaknesses.
EBITDA Quality & Consistency
Why buyers care: Inconsistent or "adjusted" earnings create uncertainty. Buyers discount what they can't verify.
Owner Independence
Why buyers care: If you ARE the business, buyers see massive transition risk. Owner-dependent businesses get 20-40% discounts.
Customer Concentration
Why buyers care: If one customer leaving would significantly hurt the business, that's a risk buyers will price in.
Revenue Predictability
Why buyers care: Recurring revenue is worth more than project-based revenue. Predictability reduces risk.
Valuation Reality Check
Drivers 1-4 often account for 60-70% of multiple variation between similar businesses.
Documented Systems & Processes
Why buyers care: Tribal knowledge dies in transitions. Documented processes prove the business is transferable.
Financial Clean Books
Why buyers care: Messy books = hidden problems. Clean financials signal a well-run business and speed up diligence.
Management Team Strength
Why buyers care: A capable team that stays post-acquisition reduces integration risk and proves the business isn't a one-person show.
Growth Runway
Why buyers care: Buyers pay for future potential. Clear, achievable growth opportunities increase what they'll pay today.
The Compounding Effect
Weaknesses compound. One issue might cost you 0.5x on your multiple. Three issues together might cost you 2x.
Technology & Infrastructure
Why buyers care: Technical debt and outdated systems create post-acquisition costs. Modern infrastructure signals operational maturity.
Market Position & Differentiation
Why buyers care: Commoditized businesses compete on price. Differentiated businesses have pricing power and defensible margins.
Contract & Legal Cleanliness
Why buyers care: Legal issues discovered in diligence kill deals or crush valuations. Clean legal = smooth transaction.
Operational Metrics & KPIs
Why buyers care: What gets measured gets managed. Businesses with clear KPIs demonstrate operational sophistication.