Financial record Monthly financials reconcile Monthly profit and loss statements, balance sheets, and trailing results agree to the accounting system. Financial record Add-backs have support Owner compensation, one-time costs, personal expenses, and other proposed adjustments have records and explanations. Revenue quality Service-line margin is visible Managed services, projects, resale, security, and other work can be compared by revenue and gross margin. Revenue quality Recurring revenue reconciles The MRR schedule agrees to billing and identifies term, renewal, pricing, and cancellation rights. Revenue quality Retention is measurable Logo and revenue retention can be shown by period without relying on a current customer list alone. Revenue quality Customer concentration is known Largest-client, top-three, top-five, and vertical concentration are current and tied to revenue. Diligence file Customer contracts are organized Executed agreements, amendments, renewal terms, pricing, service scope, and assignment language are accessible. Diligence file Vendor commitments are mapped Material tools, minimum commitments, renewal dates, change-of-control terms, and pass-through costs are documented. Diligence file Security obligations are documented Internal controls, customer commitments, insurance, incidents, and compliance responsibilities have a current record. Transferability The owner role can be explained Sales, customer relationships, escalations, finance, and delivery work still owned by the founder are visible. Transferability Leadership responsibilities are delegated Named leaders own delivery, customer success, finance, sales, and key operating routines beyond the founder. Transferability New revenue is repeatable Pipeline stages, source, win rate, sales cycle, pricing authority, and relationship ownership can be shown.
0 of 12 evidence areas ready
Prepare before a process The first job is assembling reliable financial, recurring-revenue, contract, and owner-role evidence before inviting buyer scrutiny.
First gaps to close Monthly financials reconcile Reconciled monthly records let a buyer trust the earnings bridge and spend less time reopening basic financial questions. Add-backs have support Unsupported adjustments are usually challenged, reducing the earnings figure used in an offer. Recurring revenue reconciles A reconciled recurring-revenue schedule supports the durability of the revenue a buyer expects to inherit. Recommended next step Build the core diligence file and use an outside view to see which parts of the company story need proof.