Module 01 of 09

Reconstruction Cost

What does it cost to reconstruct this enterprise if the people who know how it works leave on closing day?

Enterprise value of this transaction

In millions of dollars (USD)

$100M

Critical employees

How many employees, if they resigned on closing day, would cause the company to lose critical operational knowledge?

5

Knowledge concentration

Higher = knowledge is concentrated in very few people. Lower = knowledge is well distributed across the organization.

60

Documentation coverage

What percentage of operational processes are actually documented in writing — not just in someone's head?

50%

Key personnel departure probability

What is the probability that key personnel will leave within the first year after close?

35%

Active contracts

How many active contracts does the company currently have?

50

Undocumented processes

How many important operational processes are not documented in any system?

15

Compliance gates at risk

How many compliance control points depend on this transition going smoothly?

3

Dead objects

Obsolete systems, contracts, or assets that nobody uses but still cost money to maintain.

50

Rate assumptions

General consultant rate ($/hr)

$250/hr

Compliance specialist rate ($/hr)

$300/hr

Module 02 of 09

Hidden Enterprise Value

What value exists in this enterprise that doesn't show up in the seller's financials?

Underpriced contracts

How many contracts are priced below market value?

5

Average potential price increase per contract

In thousands of dollars

$50K

Probability of achieving that repricing after close

50%

Certifications & licenses

How many valuable regulatory certifications or licenses does the company hold?

2

Cost to obtain each certification from scratch

In thousands of dollars

$200K

Months to obtain each certification if it didn't exist

12 mo

Process compression

People doing manual work that should be automated

5

Annual fully-loaded cost per person

In thousands of dollars

$120K

If automated, what percentage becomes real savings?

60%

Knowledge monopoly

Critical employees who carry valuable business relationships

3

Average revenue generated per relationship employee

In thousands of dollars per year

$300K

Probability of retaining those employees after close

70%

Module 03 of 09

Propagation Score

What breaks when integration begins, and where should you start?

Total operational objects

Contracts + systems + key employees + processes + customers + compliance gates — total count

100

Average dependencies per object

On average, how many other elements does each operational object depend on to function?

4

Single-source concentration

What percentage of critical objects depend on a single source with no backup?

30%

System integration level

How well integrated are the systems with each other? (Higher = more automated data sharing)

50%

For each object type — rate depth (1–10) and fragility (10–90%)

Contracts

If a contract changes, how many areas does it affect? (1–10)

4

What % of contracts depend on one person/system with no backup?

30%

Employees

If a key employee leaves, how many processes/relationships are affected? (1–10)

6

What % of key employees have no trained backup?

50%

Systems

If a system fails, how many other systems/processes are affected? (1–10)

5

What % of systems have no redundancy or backup?

35%

Processes

If a process changes, how many downstream areas are affected? (1–10)

4

What % of processes depend on a single person to execute?

40%

Customers

If a major customer is lost, how many business areas are affected? (1–10)

5

What % of revenue depends on very few customers?

40%

Compliance Gates

If a compliance control point fails, how many areas are affected? (1–10)

7

What % of compliance control points have no automatic verification?

60%

Module 04 of 09

Compliance Exposure

What compliance is being inherited, and how much does that risk cost?

Compliance documentation coverage

What percentage of compliance processes are formally documented?

50%

Years since last external compliance audit

2 yr

Known regulatory violations on record

0

Full-time compliance employees

3

Annual revenue exposed to regulatory regimes ($M)

$20M

Open regulatory inquiries or investigations

0

Pending license or permit renewals

2

Third-party vendors with access to regulated data or systems

5

Module 05 of 09

Export Control Transfer Risk

Can export control licenses transfer, and how solid is the compliance architecture?

Control DNA architecture (rate 1–5)

How embedded is product/technology classification in operational systems?

1 = lives in spreadsheets or someone's memory · 5 = fully embedded in every operational system

SpreadsheetsFully embedded

How automatic are the control points that stop a non-compliant transaction?

1 = fully manual · 5 = fully automated with no human routing required

Fully manualFully automated

How automatically is compliance evidence generated at the moment of each decision?

Never automaticAlways automatic

How much visibility exists over supply chain compliance?

No visibilityFull visibility

License inventory

Active ITAR licenses

0

Active EAR licenses

0

Active DDTC agreements (Technical Assistance Agreements, etc.)

0

Estimated months to transfer all licenses to new owner

6 mo

Known export control violations in past 5 years

0

Years since last external export control audit

2 yr

Revenue from products/technology under export control

10%

Module 06 of 09

AI Readiness Score

Can this enterprise receive AI in the next 12 months?

Enterprise observability (rate 1–5)

How well can the company observe its own operational state in real time?

1 = no visibility, data is siloed · 5 = full real-time observability, structured connected data

No visibilityFull observability

How rule-based are operational processes?

1 = everything is case-by-case human judgment · 5 = fully rule-based and predictable

Human judgmentRule-based

How connected are the systems through automatic integrations?

Fully siloedFully integrated

How structured and retrievable is the operational knowledge?

1 = lives only in people's heads · 5 = fully documented and machine-readable

Tacit onlyFully structured

People (FTE) doing manual work that compensates for missing automation

10

Systems with no API integration to the rest of operations

5

Operational decisions that could be rule-based but require human routing today

40%

People carrying critical operational knowledge not in any system

4

Module 07 of 09

Cultural Compatibility

Can these two organizations operate as one?

Rate cultural alignment between acquirer and target (1–5)

Decision-making style

1 = very different (one centralized, one distributed) · 5 = nearly identical

Very differentNearly identical

Accountability norms

How similarly do both organizations handle failure and transparency?

Very differentNearly identical

Execution speed

How similar is the pace of decision-making and delivery?

Very differentNearly identical

People architecture

Trust norms, power distribution, leadership structure

Very differentNearly identical

Total employees in the target company

500

Average fully-loaded annual cost per employee ($K)

$150K

Probability of key talent departure in first 90 days post-close

20%

Active HR disputes or investigations currently open

0

Module 08 of 09

AI Disruption Risk

You are not just buying an enterprise. You are buying its exposure to being made obsolete.

Model dependency

What percentage of the core product value is delivered by tasks a frontier AI model can already perform?

0 = deeply proprietary workflow · 100 = thin wrapper on a general model

30%

Data moat strength

Strength of proprietary data or expert-validated content advantage

0 = public data, easily replicated · 100 = decades of proprietary, licensed, or expert-validated content

50

Agentic substitution risk

Risk that an agentic system replaces the full customer workflow — not just one task within it

0 = workflow requires irreplaceable human judgment · 100 = fully chainable by an agent today

20%

AI talent concentration risk

How dependent is the company on key AI/ML talent that is scarce and hard to replace?

30

Investment horizon

How many years is this asset expected to be held before exit?

5 yr

Module 09 of 09

Deal Decision Score

Three final questions about the deal itself. The engine will synthesize all nine modules into one recommendation.

Strategic fit

On a scale of 1–10, how well does this acquisition align with the buyer's stated strategy?

7

Deal urgency

On a scale of 1–10, how urgent is it to close now vs. being able to wait?

5

Competing bidders

How many other bidders are actively competing for this company?

1