Twelve statements. Score each 0 for No, 1 for Partly, 2 for Yes, for a maximum of 24. Three of the twelve turn on a figure rather than a judgment call, so enter the number and the score follows. This gives you a readiness read, not a price.
The business can run for two weeks without you in it.
Key customer relationships are held by your team, not only by you.
Your core processes are written down as SOPs people actually follow.
You have managers who own outcomes, not an owner doing everything.
No single person would stall the business if they left.
Concentration. Your single largest customer, carrier, TPA, or program as a share of trailing-twelve-month revenue. Read it off the revenue detail, not off memory.
At or under 10 scores 2. Above 10 and up to 25 scores 1. Above 25 scores 0. Exactly 10 reads healthy, exactly 25 reads caution.
You have recurring commercial or MSA revenue, not one-and-done jobs.
A meaningful share of revenue is commercial, not only residential or insurance.
Your financials are clean, current, and ready to hand to a buyer.
Net margin. Net profit margin from your most recent closed year-end financials, not a running estimate.
Three straight years at or above 10 scores 2. At or above 5 scores 1. Below 5 scores 0.
Working capital. Cash on hand plus undrawn committed credit, against your average monthly operating burn for payroll, materials, and subs. A line your bank can pull at will does not count.
More than 90 days scores 2. Sixty to 90 days scores 1. Under 60 scores 0. Exactly 60 and exactly 90 both score 1. Counted at 30 days to the month.
Your customer relationships and contracts would transfer to a new owner.
Bands. 20 to 24 buyer-ready. 14 to 19 close, with known gaps. 8 to 13 owner-dependent. 0 to 7 not sellable as it stands. Every score from 0 to 24 lands in exactly one band. These bands and the three numeric thresholds are this scorecard's working thresholds, not a published industry standard and not a valuation.
Re-run it once a year when the financials close. Record the date, the total, and every statement you scored 0 or 1. Exit readiness moves in years, and a dated series of these is the nearest thing you will have to evidence that the business got less dependent on you.