Worksheet 04 · Readiness

Sale-readiness checklist, 2026.

Buyers ask a short set of questions before discussing price: how much revenue renews on its own, how much depends on the owner, who on staff stays, what the systems and records look like, and how much time the seller has. This sheet scores those answers against what buyers look for in 2026.

Each item below a full score shows what buyers usually do about it and what changes it.

  • Twelve questions, three answers each
  • No email
  • About three minutes
Sale-readiness worksheet Sheet 04 · Rev. 2026-09
Readiness score

0 / 100

 

Items buyers will raise
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    How the sheet works

    Terms before price

    Buyers rarely reject a practice for one weak answer. The weakness shows up in the terms instead: less cash at close, a longer retention holdback, a required seller stay. Fixing an item before the sale removes the reason for the clause.

    Weights

    Recurring revenue, owner dependence, and staff carry the highest weights because they drive client retention. Retention is the main thing buyers underwrite in a practice sale.

    Time

    A seller who can stay through one or two tax seasons closes most items on this list during the transition. That is why the timeline question carries weight. Our process runs about twelve weeks from first call to close.

    Method and sources

    Scoring

    • Each answer scores 0, 1, or 2 points. Each question has a weight of 1 to 3. The score is weighted points as a share of the maximum, on a 0 to 100 scale.
    • Weights: recurring revenue 3, owner dependence 3, client concentration 2, staff 2, client age 2, fees 2, financial records 2, timeline 2, systems 1, processes 1, office 1, engagement letters 1.
    • Bands: 80 and above, ready. 60 to 79, nearly ready. Below 60, prepare first, or expect the items to be reflected in the terms.
    • The questions and weights are ours. They are not an industry standard.

    Sources for the questions

    1. CT Acquisitions, Accounting Firm Business Valuation (2026): below 0.8x of revenue when the seller is the lead reviewer or client concentration exceeds 25%. Higher multiples above 60% recurring revenue. Discounts for tax-season concentration.
    2. Poe Group Advisors, What Is the Value of an Accounting Practice? (2026): key staff without retention agreements, client concentration, and open-ended seller involvement as negative factors. Higher billing rates and realization as positives.
    3. Client retention after a sale: 75 to 80% on average, 90% or better with a transition plan (ABA Advisors; Midwest Business Brokers).
    4. IRC §7216 and Reg. §301.7216-3: written client consent is required before tax-return information is disclosed to a buyer in diligence.
    Other sheets

    Questions about a sale

    A first call is thirty minutes, confidential, and with a principal. You can also write to [email protected] or reach us through your broker.

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