> ## Content Index > Fetch the complete content index at: https://blog.sellingyourcanadianbusiness.com/llms.txt > Use this file to discover other available public pages before exploring further. # Is your business an acquisition target? Take the quiz. - URL: https://blog.sellingyourcanadianbusiness.com/is-your-business-an-acquisition-target-take-the-quiz/ - Published: 2022-11-18T13:52:04.000Z - Updated: 2026-08-14T18:56:17.000Z - Description: A quick self-scored quiz on cash flow, customer concentration, management depth and more, to gauge how appealing a Canadian business looks to a buyer today. - Author: Karl E. Sigerist, Jr., ICD.D - Tags: Assessments, Articles Sell-Side Is your business an acquisition target? Take the quiz Wondering whether your company has what it takes to catch a buyer's eye? Whether you are thinking of selling soon or just planning ahead, this quick quiz helps you assess how appealing your Canadian business is in the M&A market. Answer yes (1 point) or no (0 points) to each question, then tally your score. 1\. Strong and predictable cash flow — consistent revenue growth over multiple years, high profit margins or recurring income such as subscriptions or long-term contracts 2\. Competitive advantage and market position — unique products, proprietary technology, strong brand loyalty or cost advantages over competitors 3\. Diversified customer base — no single client over 20% of revenue, with customers spanning industries or regions 4\. Scalable operations — low customer acquisition costs, efficient systems and opportunities in new markets 5\. Strong management team — experienced leaders who could stay post-sale, low staff turnover and a succession plan 6\. Growing industry — a sector outpacing Canada's GDP growth, benefiting from technology or market trends, or seeing rising demand 7\. Clean financials with low debt — minimal debt, transparent CPA-compliant financials and no lawsuits or tax issues 8\. Synergy opportunities — overlapping customers, supply-chain savings or technology that could boost a buyer's operations 9\. Proven growth and stability — steady revenue and profit growth over 3 to 5 years, low churn and resilience through economic dips 10\. Proprietary assets or intellectual property — patents, trademarks, exclusive contracts or proprietary technology that set you apart What does your score mean? \- 8 to 10 — prime target: you have most of the traits buyers look for and are likely to draw serious interest \- 5 to 7 — solid contender: real appeal with room to grow; focus on your "No" answers, like diversifying clients or cleaning up financials \- 0 to 4 — work in progress: start by tackling debt, building a team or finding ways to scale Whatever your score, you can make your business more attractive — and the only way to know for sure how the market sees it is to test the waters with a valuation. Key facts: is your business an acquisition target? Ten traits scored yes or no, out of 10 Score bands: 8 to 10 prime target; 5 to 7 solid contender; 0 to 4 work in progress Customer concentration: no single client should exceed 20% of revenue Improvement levers: clean financials, diversify customers, cut debt, build a leadership team If this content was useful, the rest of the Selling Your Canadian Business library is one click away. Visit [www.sellingyourcanadianbusiness.ca](https://sellingyourcanadianbusiness.ca/?ref=blog.sellingyourcanadianbusiness.com) for a monthly newsletter, audio podcast, and video interviews with Canadian advisors. Subscribe now to The Canadian Exit Briefing for exclusive articles, guides and reports written for Canadian business owners and their advisors. Pass this article along to another owner who is working through the same questions. Disclaimer: This article is for general informational purposes only and does not constitute legal, tax or financial advice. Consult qualified advisors regarding your specific circumstances.