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Tool Gate · How it works

How the gate works

How the Acquisition-Offer Survival Audit gate works

This tool grades your own business against what a buyer's diligence team will stress-test before they close. 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 / transferabilitydeal-killer · owner is the businesswt 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
score 75+
GAPS TO CLOSE
score 50+
WOULD NOT SURVIVE DILIGENCE
below floor
Deal-killer · worsen-only

Two dimensions are dispositive: if the financials can't be validated or the business can't run without the owner, the deal is WOULD NOT SURVIVE DILIGENCE regardless of the score. A polished, owner-run business is a job a buyer can't buy — a single deal-killer at 0 forces the worst verdict no matter how high the survival score.

75/100
WOULD NOT SURVIVE DILIGENCE

Why: Financials, customers, legal, and the data room all score a clean 2 — the survival score is 75, which reads DEAL-READY. But owner independence is 0: the business is the owner. A buyer paying a multiple would be buying a job that ends when you walk out the door, so the deal-killer gate forces WOULD NOT SURVIVE DILIGENCE despite the 75.

Fix firstOwner independence / transferability is 0 — build the management layer, SOPs, and a transition plan so the business survives the seller walking out, before you take it to market.

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