Founder Diligence Readiness: A Practical Checklist Before You Raise or Sell
Whether you are raising or preparing an exit, diligence readiness compounds. Use this checklist to reduce surprises.
Diligence is a product of the business
Buyers and partners do not invent problems in diligence — they discover them. The founders who negotiate from strength treat readiness as ongoing hygiene, not a scramble after a term sheet.
This checklist is useful on the Transition path, and for growth-stage partnership conversations that involve real diligence.
Core checklist
Financials
- Clean monthly P&L and cash flow for at least 24 months
- Revenue recognition policy written down
- Customer concentration and churn explained without spin
- Cap table and option pool current
Customers and contracts
- Top customer list with renewal dates and notice periods
- Key contracts searchable in a data room
- No undocumented side deals or handshake discounts that move numbers
Team and ops
- Org chart that matches how work actually happens
- Retention risks named honestly
- SOPs for the processes that break when the founder is out for two weeks
Narrative
- One-page company story a buyer can retell
- Clear “why now” for a transaction or partnership
- Known risks listed with mitigations — not buried
How Tage uses this in a transition
On Transition we help you prioritize what moves valuation and certainty — not every spreadsheet in existence. If you are 18–36 months from a possible liquidity event, starting now is the advantage. Talk it through privately.
Related reading
More on Transition: Eventually, every owner asks: What’s next?
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