Corporate Development
The 35-Factor Self-Assessment Guide
Five disciplines. Thirty-five factors. Score your own company — every one rated from Critical to Leading, so a valuation conversation starts with evidence instead of opinion.
The Corporate Dashboard: Measuring Strengths and Weaknesses
Financial Metrics
- 01Revenue Size
- 02Sustainable Profitability
- 03Historical Growth
- 04Legal Structure
- 05Subcontracted / Pass-Through Revenue
- 06Days Receivables (DSO)
- 07Bill Rates (Wrap Rate)
Strategic Factors
- 08Customer / Agency Base
- 09Mission-Related Domain Knowledge
- 10Security Clearances
- 11Contract / Agency Concentration
- 12Pipeline & Business Development Opportunities
- 13Proprietary Tools & IP
- 14Geographic Footprint
Solution Metrics
- 15Solution: TRL Stage
- 16Solution: Independent Verification and Validation
- 17Solution: Enterprise Readiness
- 18Solution: Platform or Feature
- 19Solution: Patents & Trademarks
- 20Solution: Plug & Play vs Long Implementation
- 21Solution: Dual Use
Contracts Metrics
- 22Contract Vehicles
- 23Visibility into Future Cash Flows
- 24Contract Expansion Potential
- 25Contract Performance & Re-Win History
- 26Prime Contracts Percentage
- 27Set-Aside Contracts Risk
Operational Metrics
- 28Succession Planning & Key Personnel
- 29Business Development Team Caliber
- 30Back Office & Accounting Systems
- 31Employee Turnover Rate
- 32Virtual Bench & Recruiting Engine
- 33Process Certifications & Quality Standards
- 34Legal & Tax Cleanliness
- 35Corporate Culture Alignment
Buyers will score your company whether you do or not. Answer 35 questions in about 15 minutes — where your business stands today and where it needs to be when you sell — and see the gaps that are quietly discounting your value, before an acquirer finds them first.
Worked Example
Aegis Signal Systems: Scored Against the Exit Plan
Hypothetical example — 185-person C5ISR and cyber services firm
Company Today
- Revenue
- $28M
- EBITDA Margin
- 9.4%
- 3-Yr CAGR
- 14%
- Prime Revenue
- 38%
Exit Plan
Majority recapitalization with a lower-middle-market PE fund in 36 months
- Cross the 10x EBITDA threshold by reaching $50M revenue at a 15% margin
- Graduate off set-aside dependence before the SBA size standard runs out
- Retain 30% rollover equity for a second bite at the platform exit
Financial Metrics
Pass-through revenue is diluting gross margin.
Strategic Factors
Single agency carries 61% of revenue — the first item a buyer will discount.
Pipeline is thin beyond the next two re-competes.
Solution Metrics
Contracts Metrics
No multiple-award IDIQ position of their own.
72% of backlog is set-aside work with size-standard expiry inside the hold period.
Operational Metrics
No named successor to the founder-CEO.
Score Your Company
Take the 35-Factor Self-Assessment
Rate each factor twice — where your company is today, and where it needs to be at exit. When you're done, register for the free webinar to unlock your gap dashboard and downloadable report.
0 of 35 factors scored
1. Revenue Size
Revenue size serves as a primary litmus test for corporate maturity, management capacity, and business system stability. Larger revenues command higher valuation multiples due to market presence and acquirer impact.
Where you are today
Where you want to be at exit
2. Sustainable Profitability
Sustained profit margins drive increased borrowing capacity, lower investor risk, and fund organic growth.
Where you are today
Where you want to be at exit
3. Historical Growth
A proven compound annual growth rate (CAGR) demonstrates market demand and strategic execution capabilities.
Where you are today
Where you want to be at exit
4. Legal Structure
Corporate legal structure influences post-acquisition tax efficiency and transaction flexibility.
Where you are today
Where you want to be at exit
5. Subcontracted / Pass-Through Revenue
High proportions of pass-through revenue or subcontracted work reduce gross margins and indicate lower proprietary service value.
Where you are today
Where you want to be at exit
6. Days Receivables (DSO)
Receivables collection speed reflects working capital efficiency and management effectiveness.
Where you are today
Where you want to be at exit
7. Bill Rates (Wrap Rate)
Average bill rates reflect market reputation, specialized technical caliber, and pricing leverage.
Where you are today
Where you want to be at exit
Section 1 of 5
Financial Metrics
Foundational financial performance, revenue scalability, earnings sustainability and capital structure.
| Factor | Critical | Negative | Moderate | Positive | Leading |
|---|---|---|---|---|---|
| 01 Revenue Size Revenue size serves as a primary litmus test for corporate maturity, management capacity, and business system stability. Larger revenues command higher valuation multiples due to market presence and acquirer impact. | $5M or less | $5M to $20M | $20M to $50M | $50M to $100M | $100M + |
| 02 Sustainable Profitability Sustained profit margins drive increased borrowing capacity, lower investor risk, and fund organic growth. | Break-Even / Unstable | 0% - 5% EBITDA Margin | 6% - 10% EBITDA Margin | 10% - 20% EBITDA Margin | 20%+ EBITDA Margin |
| 03 Historical Growth A proven compound annual growth rate (CAGR) demonstrates market demand and strategic execution capabilities. | Flat or Negative Growth | Short Operating History | 3% to 5% CAGR | 6% to 10% CAGR | 10%+ CAGR |
| 04 Legal Structure Corporate legal structure influences post-acquisition tax efficiency and transaction flexibility. | Single Owner S-Corp | Multiple Owner S-Corp | Closely-Held C-Corp | Widely-Held C-Corp | Employee Stock Ownership Plan (ESOP) |
| 05 Subcontracted / Pass-Through Revenue High proportions of pass-through revenue or subcontracted work reduce gross margins and indicate lower proprietary service value. | 30%+ Subcontracted Revenue | 20% Subcontracted Revenue | 15% Subcontracted Revenue | 10% Subcontracted Revenue | 0% Direct Revenue (No Subcontracting) |
| 06 Days Receivables (DSO) Receivables collection speed reflects working capital efficiency and management effectiveness. | >70 Days | 55 – 65 Days | 45 Days | 30 – 40 Days | <30 Days |
| 07 Bill Rates (Wrap Rate) Average bill rates reflect market reputation, specialized technical caliber, and pricing leverage. | <$30 / hour | $50 - $75 / hour | $100 / hour | $125 - $175 / hour | $200+ / hour |
Section 2 of 5
Strategic Factors
Market positioning, agency alignment, domain expertise, intellectual property and competitive moats.
| Factor | Critical | Negative | Moderate | Positive | Leading |
|---|---|---|---|---|---|
| 08 Customer / Agency Base High-priority federal agencies (Defense/Intel) provide resilient discretionary budgets and premier valuation multiples. | Local & State Governments | Federal Civilian Agencies | Mix of Civilian & DoD / Intel | DoD / Intel Focus | DoD / Intel / Classified 'Black' Budget |
| 09 Mission-Related Domain Knowledge Intimate, high-level subject matter expertise commands higher margins than commodity operational support. | Help Desk / Basic Support | General Operations | Blended Support & Advisory | Subject Matter Experts (SMEs) | Project Lead / Prime Mission Architect |
| 10 Security Clearances Cleared workforce personnel and facility clearances act as significant barriers to entry and ensure customer intimacy. | None | 0% - 20% Cleared Personnel | 20% - 60% Cleared Personnel | 60% - 90% Cleared Personnel | 100% TS/SCI Cleared Personnel & Facility |
| 11 Contract / Agency Concentration Over-reliance on a single agency or contract vehicle creates severe revenue vulnerability. | 100% Tied to Single Contract/Agency | 30% - 50% Concentration | 20% - 30% Concentration | Diversified Across Multiple Agencies | Diversified Across Multiple Prime Vehicles & Agencies |
| 12 Pipeline & Business Development Opportunities Near-term qualified RFP opportunities and funded vehicle access drive post-close organic growth. | No New Pipeline | No Backlog / Unqualified Opportunities | Qualified Opportunities in 12-Month Window | Robust Multi-Year Qualified Pipeline | Sole-Source Opps & Funded IDIQ Positions |
| 13 Proprietary Tools & IP Proprietary hardware, software, or methodologies entrench the firm and create high switching costs. | None (Pure Commodity Services) | Low-Cost Off-the-Shelf Tools | Moderate Customizations / Tools | Unique Intellectual Property (IP) | Mission-Critical Proprietary Tools |
| 14 Geographic Footprint Proximity to key agency headquarters and customer decision-makers enhances capture efficiency. | Offshore / Remote | Near Minor Regional Base | Near Major Military Base | Washington DC Metro Area | Multiple Strategic Locations Near Key Customers |
Section 3 of 5
Solution Metrics
Technology maturity, independent validation, enterprise fit, intellectual property, deployability and market breadth of the solution itself.
| Factor | Critical | Negative | Moderate | Positive | Leading |
|---|---|---|---|---|---|
| 15 Solution: TRL Stage Technology Readiness Level shows how close the solution is to operational use. Higher TRLs reduce buyer risk and shorten the path to revenue. | TRL 1-3: Concept / Lab Research | TRL 4-5: Validated in Lab / Relevant Environment | TRL 6: Prototype Demonstrated | TRL 7-8: System Qualified / Operational Demo | TRL 9: Proven in Mission Operations |
| 16 Solution: Independent Verification and Validation Third-party IV&V proves the solution performs as claimed, giving buyers and acquirers confidence beyond the company's own testing. | No Independent Testing | Internal Testing Only | Customer Pilot Feedback | Independent Test Report / Lab Validation | Government or Accredited IV&V Certification |
| 17 Solution: Enterprise Readiness Security, scalability, support and compliance determine whether large organizations can adopt the solution at scale. | Prototype / Single-User | Limited Deployments, Manual Support | Scalable with Gaps (Security, Support) | Enterprise-Grade with Standard Compliance | Accredited (e.g., ATO, FedRAMP, CMMC) and Proven at Scale |
| 18 Solution: Platform or Feature Platforms that others build on command higher multiples than single features that a larger vendor can easily copy or absorb. | Single Feature, Easily Replicated | Add-On to Another Vendor's Product | Standalone Product | Product Suite with Integrations | Platform with Ecosystem / Third-Party Builders |
| 19 Solution: Patents & Trademarks Protected intellectual property creates defensible value, licensing options and barriers to competition. | No Protected IP | Trade Secrets Only | Patents Pending / Registered Trademarks | Issued Patents Covering Core Solution | Broad Patent Portfolio with Licensing Revenue |
| 20 Solution: Plug & Play vs Long Implementation Solutions that deploy quickly into existing environments shorten sales cycles and lower adoption cost for the buyer. | 12+ Month Custom Implementation | 6-12 Month Implementation | 3-6 Month Integration | Weeks to Deploy with Standard Interfaces | Plug & Play / Days to Deploy |
| 21 Solution: Dual Use Solutions serving both government and commercial markets diversify revenue and widen the pool of potential acquirers. | Single Niche Customer | Government Only | Commercial Use Identified, Not Pursued | Early Revenue in Both Markets | Established Revenue in Government and Commercial Markets |
Section 4 of 5
Contracts Metrics
Prime status, backlog visibility, recompete performance, vehicle ceilings and set-aside risk.
| Factor | Critical | Negative | Moderate | Positive | Leading |
|---|---|---|---|---|---|
| 22 Contract Vehicles Marquee contract vehicles with high ceilings and broad scope are highly attractive to strategic acquirers. | Single Small Contract | Few Minor Contracts | Multiple Standard Contracts | Marquee Agency Vehicles | Multiple Marquee / GWAC Vehicles |
| 23 Visibility into Future Cash Flows Funded backlog and multi-year option years reduce valuation discount rates. | Work at Risk (Unfunded) | Incrementally Funded Short-Term | Funded with Option Years (OYs) | Firmly Funded by Option Years | Fully Funded Base & Option Years (B&OYs) |
| 24 Contract Expansion Potential Contracts offering ceiling headroom and scope expansion provide immediate post-transaction synergy. | No Growth / Capped Contracts | Steady Flat Contracts | Expansion Opportunities for Buyer | Expansion Opportunities for Company | Sole-Source Contracts with Significant Growth |
| 25 Contract Performance & Re-Win History High past performance ratings (CPARs) and strong recompete win rates guarantee revenue durability. | 0% - 50% Re-Win Rate | 50% - 70% Re-Win Rate | High CPARs / Satisfactory Ratings | 100% Re-Win Rate | Contractor of the Year / Exceptional CPARs |
| 26 Prime Contracts Percentage Prime position provides direct customer access, relationship control, and margin retention. | Less than 40% Prime | 40% - 60% Prime | 60% - 80% Prime | 80% - 99% Prime | 100% Prime Contracts |
| 27 Set-Aside Contracts Risk Contracts won under preferential set-asides (8a, SDVOSB) risk discount or loss upon acquisition recertification. | 20%+ 8(a) Set-Aside Revenue | 20%+ SDVOB Set-Aside Revenue | 20%+ Small Business Set-Aside | 60%+ Full & Open (F&O) Revenue | 100% Full & Open (F&O) Revenue |
Section 5 of 5
Operational Metrics
Management depth, BD capability, back-office infrastructure, turnover, certifications and culture.
| Factor | Critical | Negative | Moderate | Positive | Leading |
|---|---|---|---|---|---|
| 28 Succession Planning & Key Personnel A capable management team remaining post-close minimizes integration risk and preserves enterprise value. | Owner/Founder Wants to Retire Immediately | Key Personnel Tied Only by Employment Agreements | Strong 2nd-Tier Leadership Team | Groomed Internal Successor in Place | Seasoned Management Team Committed Post-Close |
| 29 Business Development Team Caliber Dedicated BD executives with proven customer access represent a scarce resource driving enterprise growth. | Owner-Operator Handles BD Solely | Single VP of BD | Full Dedicated BD Team | Former Senior Agency Officials on BD Team | VIP / High-Profile Executive Leadership (e.g., Flag Officer/SES) |
| 30 Back Office & Accounting Systems Sophisticated DCAA-compliant accounting and G/L systems streamline M&A diligence and integration. | 1 Person Managing Manual Books | Basic QuickBooks | Reviewed Financial Statements | Audited Financial Statements | CostPoint / DCAA-Compliant Advanced G/L Systems |
| 31 Employee Turnover Rate Low turnover indicates strong culture, effective management, and staff retention in competitive sectors. | Loss of Key Executives / High Turnover | 10% Turnover or 1 Key Personnel Loss | 5% - 10% Turnover (No Key Personnel) | 3% - 5% Turnover (No Key Personnel) | Less than 3% Turnover |
| 32 Virtual Bench & Recruiting Engine Rapid recruiting capability and candidate pipelines enable rapid response to task order awards. | High Recruiting Costs / Slow Hiring | Long Lead Times for Replacements | Short Lead Times for Replacements | Established Team of 1099 Contractors | Active Qualified Candidate Backlog / Bench |
| 33 Process Certifications & Quality Standards Formal industry certifications (ISO, CMMI) qualify the company for high-value prime bids. | No Formal Processes or Certifications | Basic Documented Processes | Expired Certifications | Required Standard Certifications (e.g., ISO 9001) | Leading Certifications (e.g., CMMI Level 3+, ISO 27001) |
| 34 Legal & Tax Cleanliness Unresolved legal, tax, or regulatory liabilities represent major transaction risks. | Uncapped Liabilities / Active Litigation | Under Regulatory Investigation | Defined Sanctions / Past Issues | Minor Resolved Issues | Clear Legal & Tax History |
| 35 Corporate Culture Alignment Cultural alignment between buyer and seller is critical to preventing post-merger integration failure. | Cultural Mismatch / Friction | Old Guard Retiring / Resisting Change | Siloed / Separate Location Cultures | Similar Operational & Management Styles | Unified, High-Performance Shared Culture |