The Value Driver Checklist: Is Your Business “Transferable”?

A buyer doesn’t just buy your profit; they buy your systems and your certainty. Use this checklist to identify where your business stands on the scale of “Attractive and Ready.”

  1. Structural Capital (The “Playbook”)
  •  Standard Operating Procedures (SOPs): Are your core processes documented, or do they live in your head (the “Owner’s Trap”)?
  •  Technology Stack: Is your software scalable and integrated, or is it a patchwork of manual workarounds?
  •  Financial Integrity: Do you have three years of clean, reviewed, or audited financials? (A buyer’s due diligence starts here).
  1. Human Capital (The “Bench”)
  •  Management Depth: Can the business operate for 30 days without your involvement?
  •  Key Employee Retention: Are there “stay bonuses” or non-compete/non-solicitation agreements in place for your most critical talent?
  •  Culture: Is there a performance-based culture that exists independently of the owner’s personality?
  1. Customer Capital (The “Revenue”)
  •  Concentration Risk: Does any single customer represent more than 10-15% of your total revenue?
  •  Recurring Revenue: What percentage of your income is “contractual” vs. “transactional” (starting at zero every month)?
  •  Diversity: Is your customer base spread across different industries to weather a recession?
  1. Social Capital (The “Brand”)
  •  Brand Independence: Does the brand name belong to the company, or is it tied to your personal name and reputation?
  •  Market Position: Can you clearly articulate your “moat”—the reason customers choose you over a cheaper competitor?
  •  Digital Presence: Is your online reputation and lead generation system automated and consistent?

The “CEPA” Scoring Guide

  • Mostly “Yes”: You have a Premium Asset. You are likely in the top 20% of businesses and can command a higher-than-average industry multiple.
  • A Mix of “Yes” and “No”: You have a Lifestyle Business. It provides income, but a buyer will heavily discount the price due to the “Risk Gap.”
  • Mostly “No”: You have a Job. Your business is currently difficult to sell, regardless of how much profit you are taking home.