Exit Readiness: 12 Things Buyers Will Ask For

Whether you're planning to sell in 2 years or 10, sophisticated buyers have a standard set of expectations. The businesses that command premium valuations aren't just profitable—they're organized, transparent, and well-documented. Here's what buyers will ask for.

Financial Documentation

1. Three years of audited or reviewed financial statements — GAAP-compliant, with clean audit opinions.

2. Monthly financial packages — showing you have a consistent close process and timely reporting.

3. Revenue detail by customer, product/service, and geography — buyers want to understand concentration risk.

4. Normalized EBITDA analysis — add-backs for owner compensation, one-time expenses, and discretionary spending.

Operational Documentation

5. Customer contracts and retention data — recurring revenue with long-term contracts commands premium multiples.

6. Employee roster with compensation details — key-person risk analysis and team stability.

7. Vendor and supplier agreements — material contracts, terms, and concentration.

8. Technology and IP inventory — proprietary systems, patents, and competitive moats.

Legal and Compliance

9. Entity structure and organizational documents — clean cap table, operating agreements, and governance documents.

10. Tax returns for all entities — three years minimum, with correspondence from tax authorities.

11. Insurance policies and claims history — D&O, E&O, general liability, and cyber coverage.

12. Pending or threatened litigation — full disclosure with legal counsel assessment.