Exit Readiness Scorecard
Assess whether your business is prepared for a successful, high-value transition. Identify operational risks, package your assets, and maximize your final sale price.
How organized and reliable are your company's financial records?
Buyers demand verification. The quality of your bookkeeping directly impacts trust, due diligence speed, and valuation multiples.
Preparing Your Canadian Business for a High-Value Exit
Selling a business in Canada is a complex process that requires meticulous preparation, financial alignment, and operational independence. Unfortunately, many business owners wait until they are ready to retire or burnt out before thinking about exit strategy. By then, the lack of organization, heavy owner dependency, and high customer concentration can severely discount the business value or make it unsellable.
Whether your business is located in Ontario, British Columbia, Alberta, or elsewhere across Canada, our Exit Readiness Scorecard provides a clear roadmap. By evaluating core pillars of sellability, you can proactively address vulnerabilities and ensure you command a premium multiple.
Exit Readiness Frequently Asked Questions
How do I increase the value of my business before a sale?
To maximize value, focus on three primary pillars: 1) **Financial Clarity**: Have CPA-compiled statements with transparent add-backs; 2) **Systemization**: Document Standard Operating Procedures so the business operates without you; and 3) **Risk Mitigation**: Diversify your customer base and secure key employees with long-term contracts.
What is customer concentration, and why is it dangerous?
Customer concentration occurs when a single customer represents more than 10% to 15% of your total revenue. Buyers see this as an extreme risk because if that client leaves post-acquisition, the profitability of the business disappears. Businesses with low customer concentration always command higher valuation multiples.
How long does it take to prepare a business for sale?
Ideally, exit preparation should start 12 to 24 months before listing. This timeline gives you sufficient time to clean up balance sheets, resolve pending disputes, transfer customer relationships to employees, and optimize tax structuring (such as taking advantage of Canada's Lifetime Capital Gains Exemption - LCGE).