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Deal Readiness Checklist | BusinessBrokerFinder.us.com

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Deal Readiness Checklist

Check off everything that applies to your business today. We'll score your readiness and tell you exactly what to fix before going to market.

Items checked:

0 / 0

Financial Records

The first thing every serious buyer requests

0 / 7

3 years of filed tax returns are available

The gold standard for proving income. Buyers won't make offers without them.

Critical

Profit & loss statements are clean and up to date

Buyers and lenders need current P&Ls — ideally through last month.

Critical

Balance sheet is current and reconciled

Shows assets, liabilities, and equity — required for any serious due diligence.

Important

Owner add-backs are identified and documented

Personal expenses run through the business need to be listed to calculate true SDE.

Important

Revenue is trending flat or growing

Declining revenue is a major red flag. Buyers heavily discount or walk away.

Helpful

Business and personal finances are completely separate

Commingled finances raise red flags and slow down due diligence significantly.

Important

Accounts receivable are documented and collectible

Outstanding invoices are part of the deal — aged or uncollectible AR reduces value.

Helpful

Legal & Compliance

Issues here can kill deals in due diligence

0 / 6

Business licenses and permits are current

Expired licenses can halt a sale or require costly remediation before closing.

Critical

No pending lawsuits or unresolved legal disputes

Active litigation is a deal-stopper for most buyers and lenders.

Critical

All contracts with customers/vendors are transferable

Non-transferable contracts can evaporate value when ownership changes.

Important

Lease agreement has at least 2–3 years remaining (or is renewable)

A short or expiring lease creates major uncertainty for location-dependent businesses.

Important

Intellectual property (trademarks, domain, brand) is registered in the business name

IP in the owner's personal name must be transferred — a friction point in deals.

Helpful

Tax filings are current with no outstanding IRS or state tax issues

Tax liens or back taxes become the buyer's problem — they will negotiate hard or walk.

Important

Operations & Systems

Can the business run without you?

0 / 6

Written SOPs (standard operating procedures) exist for key processes

Documented processes show a buyer the business can run without the current owner.

Critical

The business can operate for 30+ days without the owner present

Owner-dependency is the #1 thing that kills deals or drives the price down.

Critical

Key employees are likely to stay through and after a transition

Staff walking out post-sale is a major risk buyers price in — retention plans help.

Important

Customer relationships are with the business, not just the owner

If customers buy because of the owner personally, they may leave when the owner does.

Important

Equipment and assets are well-maintained and documented

A buyer will inspect every asset. Deferred maintenance leads to price reductions.

Helpful

Vendor and supplier relationships are documented and transferable

Favorable supplier terms are part of the business value — make sure they transfer.

Helpful

Customers & Revenue Quality

Recurring, predictable revenue commands higher multiples

0 / 5

No single customer accounts for more than 15% of revenue

High customer concentration is one of the biggest valuation discounts in M&A.

Critical

You have a customer list with contact information

A documented customer base proves the business has real, transferable relationships.

Important

Some revenue is recurring, contracted, or subscription-based

Predictable revenue is the single biggest driver of high sale multiples.

Important

You have positive online reviews and a good reputation

Buyers inherit your reputation. Negative reviews are a negotiating tool against you.

Helpful

Revenue has been consistent or growing for at least 2 years

Consistency reduces perceived risk. Volatile revenue makes buyers nervous.

Helpful

Sale Preparation

Being prepared signals a serious, professional seller

0 / 5

You have a clear, realistic asking price in mind

Overpriced listings sit on the market and go stale. An informed price closes faster.

Critical

You are prepared to sign a non-disclosure agreement (NDA) process

Controlling who sees sensitive information protects you and your employees.

Important

You are willing to provide seller financing or an earnout

Sellers who offer financing get significantly more offers and often higher prices.

Important

You have a transition plan — willing to train the new owner for 30–90 days

A solid transition plan significantly increases buyer confidence and deal success rate.

Helpful

You have consulted with a CPA or tax advisor about the tax implications of a sale

Deal structure (asset vs. stock sale) has massive tax consequences. Know before you sign.

Helpful

Your Deal Readiness Score

0255075100

Ready to talk to a broker?

A licensed business broker can review your readiness, give you a professional valuation, and tell you exactly what to do before going to market.

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Your action plan

These are the items you haven't checked off yet, ranked by how much they'll impact your sale price and dealability.

What your score means

Here's how brokers and buyers think about deal readiness.

90–100

Ready to list now

Your business is well-prepared. A broker can take you to market quickly and you'll attract serious, qualified buyers.

75–89

Almost ready — minor gaps

You're in good shape. Address the remaining items and you'll be in a strong negotiating position.

50–74

Prepare before listing

You could sell now, but gaps will come up in due diligence and cost you money. 3–6 months of prep could add significant value.

Under 50

Not ready yet — but fixable

Significant gaps exist that will make selling difficult or result in a low price. Work through your action plan first — most items are addressable within 6–12 months.

This checklist is for informational purposes only and does not constitute professional business or legal advice. Every business sale is different. Consult a licensed business broker, attorney, and CPA before making decisions about selling your business.

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