Exit-Ready Business Systems Scorecard
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Exit-Ready Business Systems Scorecard
Assess your business systems to maximize exit value
Company Information
Company Name: [Company Name]
Date Completed: [Date]
Industry
Base Multiple: 4.5 x
1. Customer Diversification System
Measures customer concentration and relationship management
| Criteria | Notes | Score (1-5) |
|---|---|---|
| Customer concentration (no single customer >15% of revenue) | ||
| Customer acquisition process documented and effective | ||
| Long-term contracts with staggered renewal dates | ||
| CRM system properly implemented and utilized | ||
| Customer relationships not dependent on owner |
Scoring Guide:
5 = Excellent: Fully implemented, documented and effective
4 = Good: Mostly implemented with minor improvements needed
3 = Average: Partially implemented but significant gaps exist
2 = Poor: Basic implementation only, major improvements needed
1 = Critical: Non-existent or ineffective
2. Leadership Transition System
Evaluates owner dependency and succession planning
| Criteria | Notes | Score (1-5) |
|---|---|---|
| Key roles and responsibilities documented | ||
| Management team can operate without owner | ||
| Knowledge transfer processes in place | ||
| Decision-making distributed across team | ||
| Succession plan formalized for key positions |
Scoring Guide:
5 = Excellent: Fully implemented, documented and effective
4 = Good: Mostly implemented with minor improvements needed
3 = Average: Partially implemented but significant gaps exist
2 = Poor: Basic implementation only, major improvements needed
1 = Critical: Non-existent or ineffective
3. Production Management System
Assesses operations documentation and quality controls
| Criteria | Notes | Score (1-5) |
|---|---|---|
| Core processes documented with SOPs | ||
| Quality control systems implemented | ||
| Equipment maintenance and replacement planning | ||
| Staff training program formalized | ||
| Continuous improvement process established |
Scoring Guide:
5 = Excellent: Fully implemented, documented and effective
4 = Good: Mostly implemented with minor improvements needed
3 = Average: Partially implemented but significant gaps exist
2 = Poor: Basic implementation only, major improvements needed
1 = Critical: Non-existent or ineffective
4. Financial Controls & Reporting
Evaluates financial management and analysis capabilities
| Criteria | Notes | Score (1-5) |
|---|---|---|
| Monthly financial reporting package standardized | ||
| Key performance indicators defined and tracked | ||
| Profitability analysis by product/customer | ||
| Cash flow management and forecasting | ||
| Budget process established and followed |
Scoring Guide:
5 = Excellent: Fully implemented, documented and effective
4 = Good: Mostly implemented with minor improvements needed
3 = Average: Partially implemented but significant gaps exist
2 = Poor: Basic implementation only, major improvements needed
1 = Critical: Non-existent or ineffective
5. Strategic Growth Framework
Measures market positioning and growth planning
| Criteria | Notes | Score (1-5) |
|---|---|---|
| Market analysis process established | ||
| Competitive positioning documented | ||
| Strategic planning process implemented | ||
| Growth initiatives tracked and measured | ||
| Product/service development process |
Scoring Guide:
5 = Excellent: Fully implemented, documented and effective
4 = Good: Mostly implemented with minor improvements needed
3 = Average: Partially implemented but significant gaps exist
2 = Poor: Basic implementation only, major improvements needed
1 = Critical: Non-existent or ineffective
Exit Readiness Summary
| Business System | Score (1-5) |
|---|---|
| 1. Customer Diversification System | 0 |
| 2. Leadership Transition System | 0 |
| 3. Production Management System | 0 |
| 4. Financial Controls & Reporting | 0 |
| 5. Strategic Growth Framework | 0 |
Valuation Impact
Base Industry Multiple: 4.5 x EBITDA
Adjusted Multiple Based on Systems: 4.5 x EBITDA
Estimated Impact: +0.0 x EBITDA
Priority Action Items
Complete the scorecard to generate priority actions.