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Free valuation

Owner dependence test

Pick your trade and answer ten questions buyers ask. See a score out of 100 and the three things to fix first.

Free, no email, your numbers stay in your browser unless you email them to yourself.

Ten questions buyers ask

Your trade

The questions change a little by trade.

  1. 1. Whose name is the roofing license in?

    In licensing states the company cannot sign roofing contracts without a qualifier. If that is you and you leave, the buyer has to replace you fast.

  2. 2. Is there a general manager or service manager who runs the day without you?

    A manager layer is what turns an owner-run shop into a company a buyer can own from a distance.

  3. 3. Who sells and estimates most of the jobs?

    If the owner sells every roof, the buyer is buying a job. Salespeople on the payroll can be trained and tend to stay.

  4. 4. How much of your revenue comes from insurance and storm claims?

    Storm money depends on weather that may not repeat. Retail work comes from aging roofs every year and survives a new owner.

  5. 5. Who holds the relationships with your biggest customers (builders, property managers, contractors, repeat clients)?

    If the key accounts only know you, a buyer worries they leave when you do.

  6. 6. How long have most of your crew leads and installers been with you?

    Buyers are buying labor capacity. A team that has stayed for years is more likely to stay through a sale.

  7. 7. How are your books kept?

    Buyers and SBA lenders rely on tax returns and clean statements. Numbers they cannot check get valued at the low end or not at all.

  8. 8. Are your processes written down: pricing, dispatch, how a job is done, how a callback is handled?

    Written processes show a buyer the know-how stays in the company, not in your head.

  9. 9. Who answers the phone and books the work?

    Buyers ask who answers when you are gone. If calls and emergencies ring your cell, the business stops when you do.

  10. 10. Could you take a month off with your phone switched off?

    This is the question behind every other one. Buyers want to know what stops when you are gone.

0 of 10 answered

Your score

Answer all 10 questions to see your score and the three things to fix first.

This is an educational estimate, not an appraisal. RetireFromTrades gives an illustrative range based on what you told us and on general market information. It is not a formal business valuation or appraisal, and it is not an offer to buy your business. We are not a business broker, M&A adviser, CPA, lawyer or financial adviser, and nothing here is legal, tax, accounting or investment advice. Real offers depend on your actual financial records, buyer diligence, deal terms and market conditions, and can be higher or lower than this range. Before you make any decision, talk to a licensed professional. If you ask, we can introduce you to an independent licensed business broker; we do not broker, negotiate or take part in any sale.

How this works

The formula

  1. Each answer earns full, half or no points: full when a buyer would see it as a strength, none when it is a worry
  2. Weights: the license, a manager in place and a month off count 3 times; selling, revenue mix, key customers, team tenure and books count 2 times; written processes and the phone count once
  3. Score = points earned / points possible x 100, rounded to a whole number
  4. Bands: 85 and up, it could run without you; 65 to 84, it would mostly run; 35 to 64, it leans on you; under 35, it runs on you
  5. Fix first = the 3 answers that cost the most points

The assumptions

  • The questions come from what buyers check in each trade: who holds the license, who sells, the revenue mix, the team and the books.
  • The weights and bands are our own rough guide, not a market rule. A buyer weighs these against your size, your market and your numbers.
  • The score does not change your valuation. The free estimate looks at owner dependence alongside everything else.

Sources

Next step

See what your company could be worth

Answer about 20 quick questions and get a free, illustrative range, a readiness score and the things holding your number back. About 5 minutes. No phone number, no sales calls.

Pick your trade to start: