Ten questions a buyer’s accountant and lawyer test before they put a number on your business. Answer honestly rather than optimistically, and you will get a score out of 100 and the three gaps worth fixing first. About three minutes, no email needed.
Each question carries points in proportion to how much it tends to move price and terms in a real sale. Yes scores the full points, Partly scores half, and No scores none. Dependence on you carries the most weight, because it is the largest single discount buyers apply.
| What buyers test | Points |
|---|---|
| Could the business run for three months without you? | 15 |
| Do you have three years of clean financial statements that reconcile to your bank and tax filings? | 12 |
| Has profit been stable or growing over the last three years? | 10 |
| Is more than half of your revenue recurring, contracted or from repeat customers? | 10 |
| Does every customer account for less than 15% of revenue? | 10 |
| Is there a manager or senior team who would stay after a sale? | 10 |
| Do your lease, licences and key contracts have at least two years left, and can they pass to a new owner? | 10 |
| Are personal and business expenses separate, with any add-backs documented? | 8 |
| Are tax, GST and CPF filings and staff contracts up to date, with no open disputes? | 8 |
| Do you know what you want from a sale: a price range, timing, and your role afterwards? | 7 |
Your business shows the things buyers pay for. The remaining gaps are worth closing, but they are unlikely to stop a sale. A proper valuation and a quiet, well-run process are the next steps.
The foundations are in place, but a few gaps would likely cost you on price or terms. Most owners in this range benefit from three to twelve months of focused preparation before going to market.
A buyer would find enough here to discount the price or push part of it into an earn-out. Twelve to twenty-four months of preparation usually adds more value than selling now.
Today a buyer would be paying mainly for you. That is common, and fixable. Starting two to three years ahead gives you time to build a business that sells for what it is worth.
Look at it the way a buyer will. Could it run for three months without you? Are three years of accounts clean and reconciled? Is revenue recurring, spread across customers, and stable or growing? Will the lease, licences and key contracts pass to a new owner? If most answers are yes, you are close. If not, the gaps are usually fixable with one to three years of preparation.
Ideally one to three years. That is enough time to reduce dependence on you, tidy the accounts, extend the lease and build a track record of recurring revenue, all of which buyers pay for. Owners who start early tend to sell on better terms, with more of the price paid at completion.
Dependence on the owner is the largest single discount buyers apply. After that come customer concentration, revenue that has to be won again each year, a falling profit trend, accounts that do not reconcile, and leases or licences that may not transfer. Each one either cuts the multiple or moves part of the price into deferred payments or an earn-out.
No. It shows how a buyer is likely to see your business on the points they test hardest, and where to focus first. For an indicative range, use the valuation calculator. For a number you can act on, we offer a written valuation for a fixed fee, credited against our success fee if you sell with us.
Many owners come to us one to three years early, and they are the ones who sell best. We show you how a buyer would read the business today and work through the changes that make it ready to sell. The first conversation is free and carries no obligation.
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