Sample report — synthetic data
Exit Readiness Assessment

Bayside Manufacturing Co

A full paid Exit Readiness Assessment for a fictional light-manufacturing owner — the exact structure and depth you'd receive when you complete your own. Every figure below is illustrative, not real.

Prepared by Business Clinic · 27 September 2026 · Sample ID BS-SAMPLE
1 · The read

Where the business stands — and what it's worth today.

Estimated equity value today
$820K – $1.4M
SDE-based, applying industry-multiple range after net debt.
If fundamentals were improved
$1.6M – $2.7M
Same business, with the fixes in Section 7 completed.
Discount Exit tier · significant preparation before market

What this means. Buyers exist for this business today, but at a price that materially discounts your effort. The delta between the two numbers above is what the 90-day plan and the ledger in Section 7 are designed to close.

Your belief
$2.0M
Today's estimate
$820K – $1.4M
Belief gap
$0.6M – $1.2M

The belief gap is the honest read on why some conversations with brokers or buyers stall. Your number and their number aren't in the same range. This report walks the specific reasons.

2 · SDE build-up

Seller's discretionary earnings, line by line.

Every valuation multiplier applies to a real earnings figure. The one buyers use is SDE — earnings plus add-backs a new owner wouldn't inherit.

Line itemAmount (USD)
Revenue, last full year (F1)$2,450,000
− Operating costs (F4)$2,220,000
EBITDA$230,000
+ Your compensation add-back (F5)$140,000
+ Family payroll adjustment (F6 × F7)$25,000
+ Personal expense add-backs (F10)$18,000
− Rent normalization (F9 · above market)−$6,000
SDE — seller's discretionary earnings$407,000

Applied industry multiple: 2.05× – 3.51× SDE (light manufacturing / trades benchmark). Times SDE gives an enterprise value of $835K – $1,430K, then minus $15K of net business debt (F8) equals the equity range at the top of Section 1.

3 · Readiness score by domain

What buyers score you on.

Five areas, weighted equally, higher is better. The weakest area is where the discount gets applied first.

Financial Quality14 / 24 · 58%
Recurring revenue is respectable; books are still owner-prepared.
Transferability7 / 24 · 29%
The weakest domain. Every top customer runs through you.
Growth & Market15 / 24 · 63%
Demand is stable, but new-business channels are personal.
Operations & Systems10 / 24 · 42%
Some processes documented; new hires still shadow you.
Deal Readiness13 / 24 · 54%
Contracts and premises are workable; personal assets need untangling.

Overall readiness: 59 / 120. That places you firmly in Discount Exit territory — sellable, but at a materially lower multiple than the industry median unless the fundamentals below are addressed first.

4 · Red flags — weakest area first

What buyers subtract for.

T1 · Transferability · Point of contact Critical
Top-customer relationships are personal, not company.
From your answer: "Only me — the relationship IS me."
Impact on price: customer concentration plus owner-personal relationships is one of the largest deductions buyers apply. On this business, the specific dollar effect is quantified in Section 7's ledger.
First fix — this quarter: for your top three accounts, introduce a named colleague as "primary" on every non-strategic thread. Copy them on all account emails. Six months of that shifts the relationship credibly without shocking the customer.
T5 · Transferability · Named 90-day stand-in Critical
Nobody could run the business for 90 days if you disappeared.
From your answer: "Nobody single — maybe jointly."
Impact on price: buyers stress-test the "hit-by-a-bus" scenario in every diligence. No named deputy typically forces either a lower multiple or a heavier earnout structure that keeps you locked in post-sale.
First fix — next 60 days: name one person as operational deputy in writing. Written authority up to $X in decisions. Two full weeks of you being unreachable in month two builds the buyer-verifiable evidence.
FQ4 · Financial Quality · Books preparation Significant
Books are owner-prepared, not accountant-reconciled monthly.
From your answer: "I do them myself, mostly current."
Impact on price: buyers pay more for numbers a CPA has prepared. Owner-prepared books draw a discount and slow the diligence process.
First fix — this quarter: monthly reconciliation with a bookkeeper, accrual basis. By 12 months you have a clean trailing set for buyers.
OS1 · Operations · Documented processes Significant
Only a few processes are documented, and they're mostly outdated.
From your answer: "A few, mostly outdated."
Impact on price: undocumented operations depress the "goes-with-the-business" score. Buyers assign lower multiples to businesses whose value walks out the door with the owner.
First fix — this quarter: the four processes that generate 80% of your revenue. One-page checklist each, updated once by the person who actually runs it. Not a manual.
DR4 · Deal Readiness · Personal assets Significant
Several personal items are entangled with the business.
From your answer: "Several — unwinding is real work."
Impact on price: entangled personal assets slow deals and often trigger valuation write-downs at close. Buyers price the friction into the offer.
First fix — starting now: list every personal asset (vehicle, equipment, real estate) that touches the business. Decide which stay with you, which convert to arm's-length lease, which get sold. Update your accountant with the plan this quarter.
5 · Commercial context

Two forces shaping every number above.

Value proposition — clear. Your positioning is clear, which is an asset the transferability work can lean on. Customers know what they're buying beyond your presence.

Demand — relatively stable. Stable demand is the ideal condition for pre-exit work: the business can absorb the transition while you step back, because you're not simultaneously firefighting month-to-month volatility.

6 · What's already working

Two strengths worth naming.

Recurring revenue share is strong. Over 60% of your revenue is recurring or contracted. This is one of the most valuable characteristics a buyer looks for and it lifts your multiple within the industry band.

Margin trend is holding. Three-year margin is steady, not drifting down. Buyers pay more for stable margins than they discount for owner-dependence — this is the base you're building the fixes on.

7 · The ledger

What each fix adds to enterprise value.

The gap between today's estimate and the potential is not one number to a buyer — it's a sum of specific discounts. Each row below closes one of them.

FixDiscount removedRange added to EV
Top-3 account handover to named team memberCustomer concentration+$200K – $350K
Named 90-day operational deputy, in writingKey-person risk+$150K – $250K
Bookkeeper-prepared accrual books, 12 months cleanFinancial quality+$80K – $150K
Documented playbooks for the four core processesOperations transferability+$100K – $180K
Personal-asset separation completedDeal readiness / friction+$50K – $100K

Total additive range: +$580K – $1,030K, which is what carries the equity from Discount Exit to Clean Exit territory.

8 · The 90-day plan

Sequenced by leverage — highest-return work first.

Days 1–30 · Named deputy

Solve the "hit-by-a-bus" gap first.

  • Pick the one person on your team who's furthest along in judgement. Name them deputy in writing.
  • Written authority up to $X in decisions. Post it visibly.
  • Measure: on day 30, how many decisions this week required you personally?
Days 31–60 · Top-account handover

Introduce a named primary on your top three accounts.

  • The colleague joins every non-strategic thread. Copied on all account emails.
  • You still show up for strategic conversations. That's fine — buyers accept an owner presence at the top of the funnel.
  • Measure: on day 60, how many customer-initiated conversations landed in someone else's inbox first?
Days 61–90 · Books to accrual

Get a bookkeeper onto monthly reconciliation.

  • Monthly close, accrual basis. Your accountant sets the target chart.
  • Aim: by day 90, month-11 numbers are produced by the bookkeeper without your input.
  • Measure: did you see last month's clean P&L within seven days of month-end?

Months 4–12. Documented playbooks for the four core processes, then personal-asset untangling. Both are lower-leverage than the three phases above but move you from Clean Exit toward Premium — do them once the first three are running unattended.

Ready to run yours?

Your report — real answers, real numbers.

The same shape as this sample, filled with your actual financials and answers. SDE build-up, industry-multiple valuation range, tier placement, red-flag ledger, and a 90-day plan.

Start your Exit Readiness Assessment — $49

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