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Tool Gate · How it works

How the gate works

How the Acquisition-Offer Diligence Readiness Audit gate works

This tool grades your business, from your own marks, against selected conditions commonly examined in buyer diligence. It scores 6 weighted controls into a 0–100 number — then a gate that can only make the verdict worse.

The 6 weighted controls

01Validated financials / Quality-of-Earningswt 24
02Owner independence / transferabilitygate · owner independence marked 0wt 20
03Customer concentration / revenue durabilitywt 18
04Clean legal, contracts & compliancewt 16
05Data-room readiness & response speedwt 12
06Working-capital & deal-mechanics claritywt 10
DEAL-READY AS DESCRIBED
score 75+
GAPS TO CLOSE
score 50+
DILIGENCE GAPS
below floor
Gate condition · worsen-only

Two dimensions are gate conditions: a 0 on validated financials (the validating financial evidence is not marked present) or a 0 on owner independence (the management, process, or transition evidence is not marked present) returns DILIGENCE GAPS regardless of the score. A gate only worsens a verdict, never lifts one, and releases when the dimension is marked above 0.

75/100
DILIGENCE GAPS

Why: Financials, customers, legal, and the data room all mark a clean 2 — the diligence-readiness score is 75, which reads DEAL-READY AS DESCRIBED. But owner independence is marked 0, a gate condition, so the result is DILIGENCE GAPS despite the 75.

Fix firstOwner independence / transferability is marked 0 — build the management layer, SOPs, and a transition plan, and document them, before you take the business to market.

A high score didn’t save it. The score is context; the gate is the answer — and where something is short, the fix first row names it. Sell-side diligence on your own business — it grades a deal, not a person. Not a broker, and not legal, tax, or investment advice.