Deal Readiness Scorecard

Do you have audited or independently reviewed financial statements for the last 3 years?

Buyers and investors require independently prepared financials — management accounts alone are insufficient

Is your management accounts pack produced monthly with commentary?

Demonstrates financial discipline and management capability

Are EBITDA figures normalised — owner benefits, once-off items, and related-party transactions removed?

Normalised EBITDA is the basis on which enterprise value is calculated

Is your cash flow forecast current and updated regularly?

A 12-month rolling cash flow forecast signals management maturity

Are all SARS obligations (VAT, PAYE, income tax) current with no outstanding liabilities?

Outstanding SARS liabilities are a deal-breaker for most buyers

Are CIPC records current — directors, shareholders, and registered address correct?

CIPC discrepancies create legal complications during transfer of ownership

Do you have a signed shareholder agreement in place?

Essential for multi-shareholder businesses — governs exits, disputes, and pre-emptive rights

Are there any material disputes, litigation, or regulatory investigations pending?

Answer No if there are none — this is a positive indicator

Is all intellectual property (trademarks, IP, software, domain names) formally owned by the company?

IP owned personally by founders rather than the company cannot be transferred with the business

Are all licences, permits, and regulatory approvals current and in the company's name?

Are key customer relationships documented in signed contracts?

Verbal or handshake agreements do not transfer with the business

Is revenue diversified — no single customer represents more than 30% of revenue?

Do key supplier agreements have reasonable notice periods and no change-of-control clauses?

Change-of-control clauses in supplier contracts can trigger automatic termination on a sale

Is there a documented sales pipeline and business development process?

Demonstrates that revenue is not solely dependent on the owner's relationships

Has the business demonstrated consistent revenue growth over the past 3 years?

Can the business operate effectively without the owner's daily involvement?

Key-man dependency is the single most common value discount in SMME transactions

Are key operational processes documented and not solely carried in people's heads?

Do key employees have signed employment contracts and restraint of trade agreements?

Without restraints, key staff could leave post-acquisition and take clients with them

Is there a capable second-tier management team in place beyond the owner?

Do you have a central data room (digital or physical) with all key business documents organised?

A well-organised data room significantly accelerates due diligence and signals deal maturity

Have board or management decisions been formally documented (minutes, resolutions)?

Have you engaged a transaction advisor or legal counsel to guide the process?

Advised transactions close faster, at better terms, and with fewer post-closing disputes