Business Exit Planning Checklist: Are You Exit-Ready?

Are you exit-ready? Most business owners who ask themselves this question do not have a clear answer. This checklist is designed to help you assess your current position honestly, across the six areas that matter most when you eventually go to market.

Work through each area and note honestly where you stand. A Red or Amber status in any area is not a reason to panic — it is a signal about where to focus your preparation.

Area 1: Financial Performance and Reporting

✅ My business produces monthly management accounts within two to three weeks of the month end.

✅ My management accounts reconcile to my statutory accounts.

✅ I have at least two to three years of consistent financial performance to show a buyer.

✅ My accounts are clear and clean — no unexplained one-offs, no inconsistent treatment of owner costs.

✅ I have a credible financial forecast for the next 12 to 24 months.

✅ My business uses a recognised accounting system (Xero, Sage, QuickBooks, or equivalent).

Red flags: Accounts only produced annually. Significant owner personal expenses run through the business. Inconsistent treatment of revenue. No management information beyond a P&L.

Area 2: Owner Dependency

✅ My business would continue to operate effectively if I was absent for three months.

✅ I do not personally hold any key customer relationships that would be at risk on my departure.

✅ My key customers know and have working relationships with members of my management team.

✅ My business’s technical knowledge and processes are not dependent on my personal expertise.

✅ A buyer could realistically operate my business without me within three to six months of acquisition.

Red flags: Customers refer to the business as “[Owner Name]’s business.” Key contracts are signed personally rather than by the company. Critical decisions cannot be made without the owner’s involvement.

Area 3: Management Team

✅ I have a management team with the capability and commitment to lead the business under new ownership.

✅ My management team has been in place long enough to demonstrate a track record.

✅ Key members of my management team are incentivised to stay through the sale process and beyond.

✅ My management team operates against clear KPIs and is accountable for their areas of responsibility.

✅ There are no key people risks — individuals the business could not function without — other than the owner.

Red flags: The only management team is the owner. Recent departures in senior roles. Management team compensation significantly below market rate. Key people on short-notice contracts.

Area 4: Revenue Quality

✅ A significant proportion of my revenue is recurring — contracted, retainer-based, or subscription.

✅ No single customer accounts for more than 15% to 20% of my total revenue.

✅ My top ten customers are on formal written contracts.

✅ My revenue is growing or stable — not in decline.

✅ My gross margins are consistent and at or above sector benchmarks.

✅ I have visibility of at least three to six months of contracted forward revenue at any given time.

Red flags: One customer represents 30%+ of revenue. Contracts are largely verbal or on customer paper. Revenue is highly seasonal or project-based with no forward visibility. Revenue declining year-on-year.

Area 5: Process Documentation

✅ My key operational processes are documented and accessible to the team.

✅ My quality or delivery processes are consistent and do not depend on specific individuals.

✅ My HR records are complete, up to date, and compliant with employment law.

✅ My intellectual property (systems, processes, methodologies, brand assets) is formally protected and owned by the company — not by individuals.

✅ My technology and IT systems are documented, maintained, and fit for purpose.

Red flags: Processes exist “in people’s heads.” Key systems are owned or licensed in the name of individuals rather than the company. No documented employee handbook or HR policies.

Area 6: Legal and Compliance

✅ My company’s statutory records are up to date — confirmation statements filed, PSC register maintained.

✅ My share register is accurate and any past share issuances are properly documented.

✅ I have no unresolved legal disputes, employment tribunals, or regulatory investigations.

✅ My key supplier and customer contracts are in writing and assignable.

✅ My property arrangements (lease, ownership) are clear and documented.

✅ My data protection (GDPR) obligations are being met.

Red flags: Outstanding legal disputes. Leases that require landlord consent to assign. Contracts that contain change-of-control clauses that could be triggered by a sale. Employee contracts that are out of date or non-existent.

How Did You Score?

If you have worked through this checklist honestly, you will have a clearer picture of your current exit-readiness than most UK business owners ever get. The areas where you have Red flags are not problems — they are preparation priorities.

For a more structured and personalised assessment, take the free Exit Readiness Score. It covers the same six areas, returns a scored result for each, and includes specific recommendations based on your answers. Take the free Exit Readiness Score →

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