Tomorrow
ExitReady™ Methodology
Exit preparation from buyer perspective: The 7 dimensions that make your company M&A-ready and enable premium valuation
3-6 Months
Shorten DD preparation
20-40%
Higher Valuation
<4 Weeks
DD-ready
Buyer Logic
M&A from Buyer Perspective
What buyers really evaluate and how to position yourself optimally
Without ExitReady™
- ×DD takes 6-12 months with multiple document requests
- ×Valuation discounts of 30-50% due to risks
- ×Deal killers from unexpected problems
- ×High stress and operational distraction
- ×Weak negotiating position
With ExitReady™
- ✓DD process in <4 weeks with complete data room
- ✓Premium valuation through system maturity
- ✓Proactive risk mitigation before DD
- ✓Continue operating undisturbed
- ✓Strong negotiating position with options
The 7 Exit Dimensions
Due Diligence Checkpoints and Buyer Questions
1. Financial Readiness
GAAP-compliant financials, reliable reporting and solid forecasts
DD Checkpoints
- GAAP/IFRS conformity verified
- Monthly close in <10 business days
- Rolling 12M forecast with <10% variance
- Clean financial audit trail
Typical Buyer Questions
- “How fast is your month-end close?”
- “How accurate are your forecasts historically?”
- “Are all provisions documented?”
2. Legal & Compliance
Contracts, IP protection and regulatory compliance without red flags
DD Checkpoints
- All contracts digitized & categorized
- IP rights documented & protected
- Compliance matrix current
- No open litigation
Typical Buyer Questions
- “Which IP do you own, which is licensed?”
- “Are there change-of-control clauses?”
- “Compliance violations in last 3 years?”
3. Operational Excellence
Scalable processes, documented SOPs and operational leverage
DD Checkpoints
- Core processes documented as SOPs
- Quality metrics & SLAs defined
- Owner dependency <20%
- Process automation demonstrable
Typical Buyer Questions
- “How does the business run without the founder?”
- “Which processes are automated?”
- “How do you scale without margin loss?”
4. Commercial & Growth
Revenue quality, customer retention and pipeline health
DD Checkpoints
- Recurring revenue >60%
- Net retention rate >100%
- Top 10 customers <30% revenue
- Pipeline coverage >3x target
Typical Buyer Questions
- “What is your customer concentration?”
- “What is your churn rate?”
- “How predictable is your revenue?”
5. Technology & IP
Tech stack, technical debt and IP portfolio
DD Checkpoints
- Tech stack documented & up-to-date
- Technical debt quantified
- Security & data protection compliant
- IP portfolio evaluated
Typical Buyer Questions
- “How high is your technical debt?”
- “What security certifications do you have?”
- “How dependent are you on specific technologies?”
6. People & Organization
Team structure, key person risk and cultural fit
DD Checkpoints
- Org chart & role descriptions current
- Key person dependency mitigated
- Retention rate >85%
- Leadership team complete
Typical Buyer Questions
- “Who are your key people and will they stay?”
- “What is your retention rate?”
- “Are there succession plans?”
7. M&A Packaging
Data room, equity story and synergy arguments
DD Checkpoints
- Virtual data room structured & complete
- Management presentation (equity story)
- Synergy theses formulated
- Q&A preparation completed
Typical Buyer Questions
- “Which strategic buyers fit?”
- “What synergies can you offer?”
- “How do you see post-merger integration?”
Due Diligence Timeline
The difference between prepared and unprepared
6-12 Months
Unprepared
- ×Multiple document requests
- ×Operational business suffers from DD stress
- ×Valuation discounts from discovered risks
- ×Deal killers from unexpected red flags
- ×Weak negotiating position
<4 Weeks
ExitReady™
- ✓Complete data room from day 1
- ✓Operational continuity without disruptions
- ✓Premium valuation through transparency
- ✓Proactive risk mitigation before DD
- ✓Strong negotiating position with options
How exit-ready is your company?
Take the ExitReady Check and get your DD readiness score with concrete recommendations