How a pack is prepared

1. You apply with your name, the business, the sector, a turnover band and a sale timeframe. Accounts are not attached to that form.
2. EntroStrategy replies to confirm whether the business is in scope. The first clients are fire, security and compliance inspection and maintenance firms. Other recurring service businesses may be considered later.
3. If both sides proceed, you agree short terms before any papers are exchanged. Those terms cover the work and how the documents may be used.
4. You provide the documents on the intake list: recent accounts, revenue by client, contracts, and a staff list.
5. The confidentiality agreement is completed with the buyer’s name and the purpose of the discussions, ready for you to send before the pack.
6. The buyer pack is a report and a workbook, written so you can forward it once that agreement is signed. The seller note lists the gaps and stays with you. Every earnings adjustment in the pack needs a note of the evidence, and an adjustment without that note is left out.
7. Standard includes one revision round. Premium adds the trend analysis, a buyer question sheet, and up to three agreements.

Screening lines used in the report

These lines are used in the seller note. They are a preparation check for you, not a grade printed in the buyer pack. They are held in the site configuration and can be changed.

• Recurring revenue above 60% of total revenue.
• Largest client below 10% of revenue, and the top five below 30%.
• Annual retention of contracted revenue above 90%.
• Owner under 20 operational hours a week.
• Debt service coverage of at least 1.5× after a stated allowance for tax and maintenance capital expenditure.
• Total leverage in a band of about 3–4× times adjusted EBITDA.

The indicative valuation range in the buyer pack is adjusted EBITDA multiplied by 3.0× to 4.0×.