Companion to: Business Operator's Blueprint Chapter 11 - Workbook tab Ch11 · Exit
Exit Readiness Scorecard (4 categories, 1-5 each)
A PE buyer will score every dimension below before bidding. Honest answers tell you where multiple expansion (or compression) will come from.
Financial
| Driver | Score |
|---|---|
| Audited / reviewed financials, 3+ years | |
| EBITDA margin vs industry benchmark | |
| Revenue growth trajectory (last 3 yrs) | |
| Customer concentration (top 10 < 30%) | |
| Working capital discipline / CCC |
Operational
| Driver | Score |
|---|---|
| Documented operating system / SOPs | |
| KPIs tracked monthly with cadence | |
| Quality / defect / NPS data trended | |
| Recurring / contracted revenue % |
Organizational
| Driver | Score |
|---|---|
| 2nd-tier leadership in place (no founder-dependence) | |
| Succession bench for top 5 roles | |
| Turnover at or below industry median | |
| Culture / engagement measured |
Market
| Driver | Score |
|---|---|
| Market growing (5%+ p.a.) | |
| Defensible moat / brand / IP | |
| Geographic / vertical expansion runway |
How this works
PE diligence runs four parallel lenses: financial, operational, organizational, market. Each is a multiple driver. Companion workbook tab: Ch11 · Exit.
Educational only. Not professional advice. Always validate model outputs with your accountant, attorney, or qualified specialist before acting.
About this tool
Part of the Business Operator's Blueprint companion toolkit. The full guide (250+ pages, $79) maps every operating-system framework Phil Baratelli has tested across hospitality, manufacturing, distribution, and capital allocation. Get the guide →
Baratelli Institute · Philip A. Baratelli, CPA, MBA · baratelliinstitute.com