Business Sale Readiness Tool

Client Value Leakage Diagnostic

The client value leakage diagnostic identifies where EBITDA quality, cash conversion and commercial defensibility may be reducing business value. See where profit, cash and enterprise value may be leaking before sale, succession, refinancing or buyer scrutiny.

A practical diagnostic for founders, accountants and advisers to identify where EBITDA quality, cash conversion, founder dependency, reporting gaps and operational complexity may reduce business value.

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Operating Reality

Profit Is Not The Same As Defensible Value

A business can be profitable and still lose value in the eyes of buyers, lenders, successors or boards.

The issue is rarely one number. It is usually the gap between what the accounts show and what the operating system can prove.

This diagnostic translates financial symptoms into commercial consequences: EBITDA defensibility, cash conversion, management dependency, buyer confidence and operational visibility.

Business Sale Readiness Succession Refinancing Buyer Approach Diligence Preparation Performance Reset

Leakage Architecture

How small operational failures compound into valuation erosion.

Value is not lost in one event. It leaks through the operating system — one pricing concession, one reporting delay, one inventory decision at a time.

Each operational failure is quantifiable. The diagnostic surfaces where leakage is occurring — across pricing, working capital, governance, visibility and execution — before it compounds into the valuation conversation.

Pricing Leakage Reporting Latency Execution Drift founder dependency definition Enterprise Value

Audience

Built For The Conversations That Usually Start Too Late

Founders & Owners

Preparing for sale, succession, refinancing or a buyer approach.

Accountants & Advisers

Helping clients understand where financial symptoms point to deeper operating causes.

Boards & CFOs

Testing whether profit, cash flow, reporting and management depth will withstand scrutiny.

M&A & Finance Advisers

Identifying value leakage before diligence, lender review or valuation discussions.

Diagnostic Result

— / 100

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Download The Value Leakage Report

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Earnings Defensibility

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Cash Conversion

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Commercial Quality

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Management Independence

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Operational Visibility

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Complexity Drag

Top Three Value Leakage Areas

Based on lowest category scores from this assessment.

Recommended Action Path

The report includes your overall score, category results, top three value leakage areas and recommended action path.

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Sample Output

What The Report Shows

The diagnostic produces a structured assessment showing overall value readiness, category-level exposure and a prioritised action path. The report is designed to be shared with clients, advisers, boards or finance teams.

Overall Value Leakage Score

68 / 100

Value Defensible

Sample Assessment

Shape Executive Diagnostic

Confidential

72%

Earnings Defensibility

48%

Cash Conversion

68%

Commercial Quality

42%

Mgmt Independence

61%

Operational Visibility

55%

Complexity Drag

Top Three Value Leakage Areas

1 Cash Conversion — 48% (Value Exposed)

2 Management Independence — 42% (Value Exposed)

3 Complexity Drag — 55% (Value Exposed)

Cash Release Review

Focus on working capital, debtor discipline, inventory quality and cash conversion before valuation, refinancing or sale discussions.

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Advisers

For Accountants And Advisers

Accountants often see the warning signs first: profit not converting to cash, margins moving without explanation, owner dependency, working capital pressure, weak reporting or valuation expectations the business cannot yet defend.

This diagnostic gives advisers a structured way to turn those financial symptoms into an operating conversation without replacing the accountant, broker, CFO or M&A adviser relationship.

Discuss A Client Situation Confidentially

Background On Each Leakage Category

These articles expand on the operating causes behind each diagnostic category.

If the diagnostic reveals issues that need an independent operator’s view before deciding how to respond, see operator advisory. For founders preparing for sale or investment, see founder advisory review or sell-side advisory before a sale process.

The Numbers May Show Profit. The Diagnostic Shows Whether The Value Is Defensible.

Use the diagnostic to identify where a business may be exposed before sale, succession, refinancing, buyer scrutiny or a performance reset.

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