Business Exit Readiness Questionnaire This questionnaire has been specifically calibrated to focus on the critical questions potential buyers will want answers to. 1. Business Financial Health 1.1 Are your financial statements (profit and loss, balance sheet, cash flow) up to date and accurate? 1.2 Can you provide at least three years of financial history? 1.3 Is your revenue stable, growing, or declining over the past three years? 1.4 What percentage of your revenue comes from your top three customers? 1.5 Do you have any outstanding debts or liabilities that could impact the sale? 2. Operational Independence 2.1 How involved are you in the day-to-day operations of the business? 2.2 Do you have a documented set of standard operating procedures (SOPs)? 2.3 Is there a competent management team in place that can operate the business without your direct oversight? 2.4 Are your employees cross-trained to handle multiple responsibilities? 2.5 Do you use technology or automation to streamline operations? 3. Market Position and Growth Potential 3.1 What is your unique selling proposition (USP) compared to competitors? 3.2 How strong is your market position in terms of customer base, brand recognition, and reputation? 3.3 Are there untapped market opportunities or growth areas for the business? 3.4 Is your industry growing, stable, or declining? 3.5 Are there potential risks or trends in your market that could impact the business? 4. Customer and Supplier Relationships 4.1 What percentage of revenue is generated by repeat customers? 4.2 Do you have long-term contracts or agreements with key customers? 4.3 Are your customer relationships transferable to the new owner? 4.4 Are there any key suppliers or vendors critical to the business? 4.5 Do you have written contracts with suppliers to ensure stability? 5. Risk Management and Compliance 5.1 Are all your legal and regulatory obligations up to date? (e.g., taxes, licenses, permits) 5.2 Are there any pending or potential legal disputes affecting the business? 5.3 Do you have adequate insurance coverage for the business? 5.4 Is your intellectual property (if applicable) protected and transferrable? 5.5 Are your health and safety policies compliant with New Zealand regulations? 6. Business Infrastructure and Assets 6.1 Do you own or lease your business premises, and is the lease transferable? 6.2 Are your equipment, technology, or tools in good condition and up to date? 6.3 Is your inventory managed efficiently and valued correctly? 6.4 Do you have a reliable IT system or database for managing customer and business information? 6.5 Are all assets, including intangible ones (e.g., trademarks, patents), documented and organized? 7. Brand and Marketing 7.1 How strong is your brand reputation in your market or community? 7.2 Do you have a clear and effective marketing strategy? 7.3 Are your website and social media channels active and generating leads? 7.4 Do you have a customer database that includes contact information and purchasing history? 7.5 Are there opportunities to expand your brand’s reach through new markets or marketing tactics? 8. Transition Planning 8.1 Do you have a plan in place for transitioning the business to a new owner? 8.2 Are you willing to stay on during a transition period if required? 8.3 Have you identified and addressed any dependencies on you as the owner? 8.4 Are all key documents (financials, contracts, SOPs) organized and ready for review? 8.5 Do you have a succession plan for key employees, if necessary? 9. Buyer Confidence 9.1 Do you have a clean, well-maintained facility or premises? 9.2 Are there any recurring issues that could be red flags for buyers (e.g., high employee turnover, unresolved customer complaints)? 9.3 Have you identified and mitigated any risks that could deter a buyer? 9.4 Have you received any inquiries or offers from potential buyers before? 9.5 Can you provide a clear and compelling reason why your business is a good investment? 10. Financial Return Potential 10.1 What is the current profit margin for the business? 10.2 How consistent is your cash flow, and is it predictable? 10.3 Are there opportunities for the buyer to increase profitability (e.g., cost reductions, new product lines)? 10.4 Do you have clear key performance indicators (KPIs) that demonstrate business health? 10.5 Have you modeled potential ROI for the buyer? Thank you Thank you!
