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Absence Test Protocol

Interactive framework to test your company's independence from you

Chapter 9

The absence test is a critical exit readiness indicator. The concept is simple: if you disappeared for 6 months, would the business continue to function and generate revenue? The answer reveals whether buyers will pay a multiple for a true business asset, or a discount for a job-with-you.

Owner-dependent businesses trade at lower multiples. A business that runs without its founder commands 4-6x EBITDA. One that's entirely founder-dependent might trade at 2-3x or face difficulty finding buyers. This calculator helps you assess your absence test score and identify which areas of dependence need resolving before exit.

Phase 1: Pre-Test Setup (2 weeks before)

Complete these preparations before your absence test:

Phase 2: During Absence (2 weeks)

Track daily performance during your absence. For each day, rate how well the business ran without you (1 = very poorly, 5 = excellently):

Scoring Rubric: 5 = No issues, business ran smoothly | 4 = Minor issues handled well | 3 = Some issues, some needed attention | 2 = Multiple issues, required intervention | 1 = Critical issues, business affected

Track three key metrics:

☐ Revenue maintained
☐ Customer issues handled
☐ Team decisions made without founder input

Phase 3: Post-Test Review

Answer these questions honestly after your absence:

Absence Test Results

Overall Independence Score

0/100

Your company demonstrated strong independence during your absence.

Areas of High Founder Dependence

Analysis will appear here after you complete the daily tracking and review questions.

Recommended Delegation Priorities

Complete the post-test review to see specific recommendations.

Buyer Impact Estimate

Your independence score affects buyer confidence and valuation multiple.

Frequently Asked Questions