SERVICE 08

Exit Readiness and M&A

Exit readiness is not a deck. It is a business that can survive institutional scrutiny. We build that readiness over time, not in the final 90 days.

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THE PROBLEM

Exit readiness is a 12 to 36 month project, not a final quarter scramble.

Most owners treat exit as an event that happens when they decide to sell. By then, the work that would have maximized the multiple is already too late to do. Exit readiness means the business can survive institutional due diligence: clean financials, defensible earnings, transferable operations, and the documentation a buyer and lender require.

The numbers have to hold up to institutional due diligence. Built on private equity experience scaling portfolio companies from approximately $50M to $500M and beyond.KEYSTONE CONSULTING TEAM
You want to sell within 3 years
You are within 12 to 36 months of a transition and need to know where you stand.
A buyer approached you
An unsolicited offer or inquiry arrived and you are not sure the business is ready.
You cannot answer diligence questions
You do not know if your financials and operations would survive a buyer's review.
WHAT WE BUILD

The exit readiness work we lead

D

Diligence readiness assessment

An assessment of whether the business can survive institutional due diligence, with a prioritized list of what to fix before a buyer looks.

E

Earnings defensibility

Work to make reported earnings defensible, so a buyer cannot reprice the deal by questioning how the numbers were built.

T

Transaction packaging

Support on transaction packaging, deal structuring, sources and uses, and the documentation a buyer and lender require, drawing on 100+ middle-market transactions.

HOW WE WORK

How we prepare the business for exit

01

Assess readiness

Run a diligence-readiness assessment to find what a buyer would question, from financials to operations to owner dependence.

02

Close the gaps

Prioritize and close the gaps that would reprice or kill a deal, from clean financials to transferable operations.

03

Defend earnings

Make reported earnings defensible so the multiple holds under buyer scrutiny.

04

Package and execute

Support transaction packaging, structuring, and documentation through to close.

What you walk away with

  • A diligence-readiness assessment with prioritized fixes
  • Defensible earnings that hold under scrutiny
  • Transferable operations that do not depend on you
  • Transaction packaging and documentation
  • Support through to close, drawing on 100+ transactions
OUTCOMES

The outcomes we engineer

The measurable shift each engagement is built to produce.

Outcome 01
100+
Transactions led
Outcome 02
$50M-$500M+
PE scaling range
Outcome 03
12-36 mo
Readiness window

Exit readiness is where every other discipline pays off. Clean financials, defensible earnings, capital allocation discipline, and reduced owner dependence all converge on the multiple a buyer will pay. The work done in the 12 to 36 months before a sale is what separates a strong exit from a discounted one.

SCOPE

What this is not

We are not a business broker
We prepare the business and support transaction packaging. If a broker or investment banker is appropriate, we coordinate with them.
We do not guarantee a sale or price
We make the business ready and defensible. The sale depends on the business, the market, and the buyer.
We are not securities advisors
We do not provide investment advisory or securities advice. Transaction counsel handles legal and regulatory matters.
THE KVCA

How this fits the assessment

Exit readiness is the KEX Index, the dimension that asks how prepared the business is for a transition, and it draws on every other index. It is built on private equity experience scaling portfolio companies through exit and the 100+ transactions Bob has led. See SBA exit planning guidance for broader context.

This work directly informs the KRI Keystone Replicability Index, KEV Keystone Enterprise Value Index, KCE Keystone Cash Efficiency Index, KODI Keystone Owner Dependence Index, KEX Keystone Exit Readiness Index.

WHO IT IS FOR

Who this serves

Growth-stage operators

Exit and recapitalization readiness for businesses approaching a transition.

See the angle

Healthcare practices

Practice transitions, succession, and sales where provider dependence is the central issue.

See the angle

Professional services firms

Firm transfers where book transferability and partner structure drive value.

See the angle
FAQ

Questions about exit readiness and m&a

How long before a sale should we start?

Ideally 12 to 36 months. The work that maximizes a multiple, clean financials, defensible earnings, reduced owner dependence, cannot be done in the final quarter. The earlier you start, the higher the multiple.

What is earnings defensibility?

It means a buyer can trace and trust your reported earnings and cannot reprice the deal by questioning how the numbers were built. It is the difference between a multiple that holds and one that erodes in diligence.

Do you sell the business for us?

We prepare the business and support transaction packaging, structuring, and documentation. If a broker or investment banker is the right path, we coordinate with them. We are not a broker.

Related services

Start with where you actually stand.

The Keystone Value Creation Assessment audits your last 12 to 36 months and gives you a written summary whether you engage us or not. If there is not a clear opportunity to create value, we will tell you directly.

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