The Exit Readiness Checklist

Financial records

• Three to five years of accrual-based financial statements
• Tax returns that reconcile to financial statements
• A list of owner and one-time expenses (add-backs) with support
• Monthly revenue and margin trends

Customers and revenue

• No single customer above 25% of revenue, or a plan to reduce it
• Written contracts with key customers
• Recurring or repeat revenue documented

Team and operations

• A management team that can run the business without you day to day
• Key employee retention plans in place
• Documented processes and systems

Legal and corporate

• Corporate records, leases, and permits current and organized
• No unresolved litigation or compliance issues
• Intellectual property and key assets properly owned

Personal readiness

• Clear goals for price, timing, and your role after the sale
• Tax and estate planning reviewed with your advisors
• A sense of what you will do next