Adelphoï Labs

Everyone Exits Eventually

Eight Proofs Scorecard

Score what you can show a buyer today. See your stage, the one proof to work on first, and what moves you forward.

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The idea

A buyer pays for what you can prove, not for what you believe. The Eight Proofs are the eight things every buyer checks. This scorecard asks you to score each one the way a buyer would, so you can see where you stand today and what to work on first.

How to score

Each proof has four pieces of evidence. Score each one from 0 to 3 for what you can show today, not what you plan to have. If you are between two scores, pick the lower one. Open "What Proven looks like" on any card to see the standard a buyer would expect.

Why a proof takes its lowest item

Each proof's score is its lowest item, not its average. A buyer does not average your strengths and weaknesses; they find the weakest point and price the whole business on it.

The four scores

  • 0 Not proven: You believe it, but cannot show it.
  • 1 Partly: Evidence exists but is incomplete, late, or needs you to explain it.
  • 2 Proven: A third party could verify it from documents alone.
  • 3 Proven and tested: Verified and stress-tested: an outsider reviewed it, or it held up when it mattered.

Proof 1 of 8

The Books

Why a buyer cares

Nothing else can be proven until the numbers can be trusted. A buyer prices only the cash flow their accountant can verify.

Monthly close

The buyer asks: When do you close your books each month?

What Proven looks like

Closed by the 10th for each of the last 12 months, with the close dates logged.

What Proven and tested adds

An outside CPA has reviewed a monthly close and found no material adjustments.

Bridge to the tax return

The buyer asks: Do your books tie to your tax return?

What Proven looks like

A one-page bridge from P&L profit to tax return income for each of the last three years.

What Proven and tested adds

The bridge was prepared or reviewed by a CPA with business-sale experience.

Add-back schedule

The buyer asks: Which expenses are you asking me to add back, and can you document each one?

What Proven looks like

A written add-back schedule with an invoice or ledger reference behind every line.

What Proven and tested adds

The schedule has been through a practice quality of earnings review and held up.

Balance sheet you can stand behind

The buyer asks: Are AR, AP, WIP and debt on your balance sheet real?

What Proven looks like

AR and AP agings, the WIP schedule and the debt schedule tie to the balance sheet every month.

What Proven and tested adds

Twelve consecutive months of tied schedules, with no unexplained year-end adjustments.

Proof 2 of 8

The Margin

Why a buyer cares

Revenue is not value; margin is. If your job-level margin cannot be reproduced from your records, the buyer will re-cut it lower.

Job costing agrees across systems

The buyer asks: Show me gross margin by job. Do RMS and QuickBooks agree?

What Proven looks like

Job costs in RMS and QuickBooks are reconciled monthly and the difference is explained.

What Proven and tested adds

The difference has stayed inside a tolerance you set for six straight months.

Costs outside the estimate

The buyer asks: Where are the costs that never made it into the estimate?

What Proven looks like

Non-estimated costs are coded to the job that caused them; supplements are tracked to collection.

What Proven and tested adds

Ten closed jobs were audited: estimate, actual cost and final margin all tie out.

Margin Guardrail on open jobs

The buyer asks: When did you know this job was losing margin?

What Proven looks like

Estimated, forecast and final margin are reviewed weekly on every open job.

What Proven and tested adds

You can show jobs where a margin slip was caught mid-job and corrected.

Margin by service line, over time

The buyer asks: Is your margin steady, improving or sliding?

What Proven looks like

Gross margin by line of work (mitigation, reconstruction, contents) for the last 36 months.

What Proven and tested adds

The trend is flat or improving and you can explain every large swing.

Proof 3 of 8

The Team

Why a buyer cares

A buyer is purchasing the people who do the work. A team that can show its goals and results earns a higher multiple.

Role Map and decision rights

The buyer asks: Who decides what when you are not here?

What Proven looks like

A current Role Map with written decision rights for each leadership role.

What Proven and tested adds

Leaders made those decisions without you for a full quarter, and it is documented.

Written goals and results

The buyer asks: Show me each leader's goals and whether they hit them.

What Proven looks like

Every leader has written goals and recorded results for the last four quarters.

What Proven and tested adds

Most goals were met, and each miss has a written cause and correction.

Scorecard and Weekly Sync

The buyer asks: How does the team know each week if it is winning?

What Proven looks like

A weekly Scorecard with at least 12 weeks of history, and a Weekly Sync held with notes.

What Proven and tested adds

A full year of history, and the meeting runs without you in the chair.

Depth and retention

The buyer asks: Who is your second in command, and will your key people stay?

What Proven looks like

A named successor for each key role and a written retention plan.

What Proven and tested adds

Key people have signed retention or stay agreements, and your second in command has run the business.

Proof 4 of 8

The Month

Why a buyer cares

If the business needs you every day, the buyer is buying a job, and pays accordingly. A month away is the test.

Core systems documented

The buyer asks: Is the way you do the work written down?

What Proven looks like

Each core system from first call to final payment is documented and has a named owner.

What Proven and tested adds

A new hire has been trained to standard using the SOPs alone.

People trained and tracked

The buyer asks: Who else can do each critical step?

What Proven looks like

A Training Tracker shows at least 80 percent of the team trained on the SOPs for their role.

What Proven and tested adds

Two people can perform every critical step; cross-training is proven by coverage during absences.

Owner's tasks handed off

The buyer asks: What do you personally do that nobody else can?

What Proven looks like

A list of everything you personally do, each item reassigned to a role with an SOP.

What Proven and tested adds

Your hours in daily operations have been under ten a week for a full quarter.

The month away

The buyer asks: Take a month off. What happens to revenue and the phones?

What Proven looks like

One full month away, documented: revenue, margin and customer scores before, during and after. (Two weeks scores as Partly.)

What Proven and tested adds

Repeated in a second year, or taken with no contact at all.

Proof 5 of 8

The Relationships

Why a buyer cares

Referral relationships that live with one person leave with that person. A buyer pays for relationships the company holds.

Relationship map

The buyer asks: Who owns your top referral relationships?

What Proven looks like

Your top 20 referral sources listed, each with a primary and a secondary contact inside the company.

What Proven and tested adds

Each source has been served by the secondary contact with no drop in work.

Relationships live in the CRM

The buyer asks: If I look in your CRM, will I find your relationships there?

What Proven looks like

All referral contacts and activity are in the CRM, not in personal phones or memory.

What Proven and tested adds

CRM data has driven the weekly sales review for at least six months.

Program and carrier standing

The buyer asks: Which programs are you on, and whose name is on them?

What Proven looks like

Program, carrier and TPA agreements are in the company's name and compliance is current.

What Proven and tested adds

Twelve months of program scorecards in good standing.

Key-person risk

The buyer asks: If your best estimator left tomorrow, what would leave with them?

What Proven looks like

Key relationships are shared across roles, and confidentiality and non-solicitation terms are in place where your attorney says they are enforceable.

What Proven and tested adds

A key person left or was out for an extended period and the relationships held.

Proof 6 of 8

The Paper

Why a buyer cares

Licenses, the franchise agreement and the lease are what make the business legally transferable. Gaps here stop a closing.

Licenses and certifications

The buyer asks: Are your IICRC, mold and state contractor credentials current?

What Proven looks like

A register of every license and certification with holder and expiry date; all current.

What Proven and tested adds

A successor qualifier has been identified and holds the credentials.

Franchise standing

The buyer asks: Are you in good standing with the franchisor?

What Proven looks like

Franchise agreement, term and renewal dates are known; all fees and reports are current.

What Proven and tested adds

PDRI has confirmed good standing in writing within the last 12 months.

Lease and premises

The buyer asks: Can your lease be transferred to a buyer?

What Proven looks like

The lease has been reviewed for term, assignment and renewal options.

What Proven and tested adds

The landlord has confirmed the assignment terms in writing.

Entity, contracts and insurance

The buyer asks: Is there anything in your legal file that will surprise me?

What Proven looks like

Entity records, ownership, insurance policies, key contracts and vehicle titles are organized; open claims are listed.

What Proven and tested adds

A transaction attorney has reviewed the file and the issues found are cleared.

Proof 7 of 8

The Pipeline

Why a buyer cares

A buyer is paying for next year's revenue, not last year's. They need to see where it will come from without you.

Business development function

The buyer asks: Who brings in the work, other than you?

What Proven looks like

A named person owns BD and reports an activity Scorecard weekly.

What Proven and tested adds

New referral sources have been won by the team without your involvement.

Revenue sources and concentration

The buyer asks: How much of your revenue depends on one source?

What Proven looks like

Revenue by source for 36 months, and a written plan for any source large enough to hurt the year if lost.

What Proven and tested adds

Concentration has been reduced, or the large source is under a written agreement.

Marketing that can be measured

The buyer asks: What does a new lead cost you, and how many do you close?

What Proven looks like

A marketing plan with a budget and results by channel.

What Proven and tested adds

Cost per lead and close rate tracked for at least 12 months.

Backlog and forecast

The buyer asks: What will the next 90 days look like?

What Proven looks like

Pipeline and WIP backlog reported weekly, with a 90-day revenue forecast.

What Proven and tested adds

Forecast accuracy is tracked and has stayed inside a range you set.

Proof 8 of 8

The Plan

Why a buyer cares

Sellers who do not know what they need, or what they will do next, back out late or accept bad terms. Your plan protects the deal and you.

The owner's number

The buyer asks: Do you know what you need from this sale?

What Proven looks like

A personal financial plan, prepared with a planner, stating the after-tax amount you need.

What Proven and tested adds

Updated in the last 12 months and compared with the current value estimate.

Exit path and resale strategy

The buyer asks: How do you intend to exit, and what is your fallback?

What Proven looks like

A written Resale Strategy naming your first-choice path and a fallback.

What Proven and tested adds

Reviewed with your advisor and, where relevant, discussed with the successor or franchisor.

Advisor team

The buyer asks: Who is advising you, and have they done this before?

What Proven looks like

A CPA with business-sale experience, a transaction attorney and a financial planner are named and engaged.

What Proven and tested adds

Your advisors have met together on your plan at least once.

Contingency plan

The buyer asks: What happens to this business if something happens to you?

What Proven looks like

A signed contingency letter; a buy-sell agreement if there are partners; insurance to fund it.

What Proven and tested adds

Your spouse or partner and your second in command have read it and know where it is kept.

Five gate questions

Each stage has a gate. These five answers, with your proof scores, decide which stage you are in.

Plan gate

Value gap written down?

Until you know the gap between what the business is worth and the number you need, you cannot tell how much work the exit will take.

Plan gate

Contingency letter signed?

If something happened to you tomorrow, a signed letter tells your family and team what to do, so the value is not lost while they work it out.

Prepare gate

Twelve weeks of Scorecard history?

Twelve weeks of weekly numbers show a buyer that the business runs on a rhythm, not on your memory.

Pinnacle gate

Month away completed and documented?

A month away, written up, is the strongest evidence that the business does not depend on you.

Pinnacle gate

Value estimate less than 12 months old?

Value moves with your results and the market. An estimate more than a year old can mislead every decision built on it.