M&A & Valuation
Sellability Index
Definition
A composite measure of how easily a business can be transferred to new ownership while maintaining value. Combines structural independence, documentation quality, team autonomy, and customer loyalty.
Why It Matters
73% of French SMEs are structurally unsellable—not because they're unprofitable, but because they're too dependent on their founders.
Sellability Index measures this dependency and predicts whether a business can successfully transfer ownership.
The 4 Components
1. Founder Independence (35%)
Can business operate without founder for 90+ days?
2. Process Documentation (25%)
Are operations documented and replicable?
3. Team Autonomy (20%)
Can team make decisions without founder?
4. Customer Stability (20%)
Are customers loyal to company or founder personally?
The Data
32%
Sellability rate among European SMEs—68% are structurally unsellable
Sellability Score → Valuation Impact
| Sellability Score | Transferability | Valuation Multiple |
|---|---|---|
| 80-100 | Excellent | Premium (+20-30%) |
| 60-79 | Good | Market rate |
| 40-59 | Fair | Discount (-10-20%) |
| 20-39 | Poor | Heavy discount (-30-50%) |
| 0-19 | Unsellable | Asset value only |
How to Improve Your Sellability Index
- Document Everything: Processes, decisions, knowledge
- Train Team to Operate Autonomously: Reduce founder dependency
- Institutionalize Customer Relationships: Team-based, not founder-based
- Build Systems & Processes: Standardize operations
- Measure Progress: Track sellability score quarterly
Assess Your Sellability
The BE Fit Index measures your business's sellability and provides roadmap for improvement.
Free Sellability Assessment →