exit

name	exit
description	Exit engine for ID8Labs. Position for and execute successful exits through strategic preparation, valuation optimization, and deal execution.
version	1.0.0
mcps	["Perplexity","GitHub"]
subagents	["strategic-think-tank"]
skills	[]

ID8EXIT - Exit Engine

Purpose

Position your product for a successful exit. Whether acquisition, acqui-hire, or strategic sale—preparation is everything.

Philosophy: Exits are not events, they're outcomes. Build acquirable from day one. The best exits happen when you're not desperate.

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When to Use

• User is considering exit options
• User receives acquisition interest
• User wants to maximize company value
• User needs help with due diligence preparation
• User asks "how do I sell my company?"
• Project is in OPERATING state and mature

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Commands

/exit <project-slug>

Run full exit readiness assessment.

Process:

1. ASSESS - Evaluate current exit-readiness
2. POSITION - Optimize for acquirer interest
3. VALUE - Understand worth and multiples
4. PREPARE - Build data room and materials
5. NEGOTIATE - Structure optimal deal
6. EXECUTE - Close the transaction

/exit assess

Evaluate exit readiness and identify gaps.

/exit value

Estimate valuation range and comparable exits.

/exit dataroom

Create due diligence documentation checklist.

/exit memo

Draft internal exit strategy memo.

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Exit Philosophy

Solo Builder Exit Reality

Exit Type	Realistic For	Typical Range
Acqui-hire	Any stage	$50K-500K
Asset sale	With users/revenue	$50K-1M
Strategic acquisition	PMF + growth	$500K-10M
Financial acquisition	Scale	$5M+

Exit Timing

Too early signals:

• No product-market fit
• No sustainable revenue
• Still figuring out the model
• Desperate for cash

Right time signals:

• Clear PMF demonstrated
• Sustainable growth
• You want to exit
• Strategic interest exists

Warning signs to exit:

• Losing interest/energy
• Market shrinking
• Better opportunities elsewhere
• Burnout incoming

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Process Detail

Phase 1: ASSESS

Exit readiness scorecard:

Factor	Score (1-5)	Notes
Product-Market Fit		Evidence of PMF
Revenue/Growth		MRR, growth rate
User Base		Size, engagement
Technology		Clean, documented
Team		Dependencies
Legal		Clean cap table, IP
Operations		Systematized
Market Position		Competitive moat

Scoring:

• 35-40: Ready for premium exit
• 25-34: Ready with some gaps
• 15-24: Significant prep needed
• <15: Not ready

Phase 2: POSITION

Positioning for acquirers:

Acquirer Type	What They Want	How to Position
Strategic (competitor)	Market share, customers	User base, retention
Strategic (adjacent)	New capability	Technology, team
Financial (PE/VC)	Returns	Growth, margins
Individual buyer	Lifestyle business	Cash flow, low effort

Positioning activities:

• Clean up technical debt
• Document everything
• Show growth trajectory
• Highlight strategic value
• Build relationships early

Phase 3: VALUE

Valuation methods:

Method	Formula	Best For
Revenue multiple	ARR × Multiple	SaaS with growth
Profit multiple	EBITDA × Multiple	Profitable businesses
User-based	Users × Value/User	Pre-revenue, engaged users
Asset value	Assets - Liabilities	Distressed/no growth
Comparable	What similar sold for	Market validation

SaaS multiples (solo builder scale):

Growth Rate	Typical Multiple
<10% YoY	2-3x ARR
10-30% YoY	3-5x ARR
30-50% YoY	5-8x ARR
>50% YoY	8-12x ARR

Adjustments:

• +1-2x for strong retention (>90% NRR)
• +1-2x for strategic fit
• -1-2x for high churn
• -1-2x for concentration risk

Phase 4: PREPARE

Data room essentials:

Category	Documents
Corporate	Formation docs, cap table, contracts
Financial	P&L, balance sheet, projections
Product	Tech docs, architecture, roadmap
Customers	Metrics, top accounts, churn analysis
Team	Org chart, key person dependencies
Legal	IP assignments, material agreements

Preparation timeline:

Timeframe	Actions
12 months out	Clean up financials, document processes
6 months out	Build data room, fix legal issues
3 months out	Prepare materials, identify buyers
1 month out	Finalize data room, practice pitch

Phase 5: NEGOTIATE

Deal structure components:

Component	Description	Typical Range
Cash at close	Immediate payment	50-80%
Earnout	Performance-based	10-30%
Equity	Stock in acquirer	0-20%
Escrow	Held for indemnity	10-20%
Employment	Retention package	Varies

Negotiation priorities:

1. Total consideration (valuation)
2. Cash vs equity split
3. Earnout terms and achievability
4. Escrow terms and release
5. Employment terms
6. Reps and warranties scope

Phase 6: EXECUTE

Closing process:

LOI SIGNED
    ↓
Due diligence (30-60 days)
    ↓
Definitive agreement negotiation
    ↓
Final document execution
    ↓
Closing conditions satisfied
    ↓
CLOSE

Post-close:

• Transition assistance
• Earnout execution
• Team integration
• Customer communication

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Framework References

Exit Options

frameworks/exit-options.md - Types of exits and fit

Valuation

frameworks/valuation.md - Methods and multiples

Due Diligence

frameworks/due-diligence.md - What buyers want

Deal Structure

frameworks/deal-structure.md - Terms and negotiation

Acquisition Prep

frameworks/acquisition-prep.md - 12-month prep plan

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Output Templates

Data Room Checklist

templates/data-room-checklist.md - Due diligence documents

Exit Memo

templates/exit-memo.md - Internal exit strategy

Term Sheet Review

templates/term-sheet-review.md - Analyzing offers

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Tool Integration

MCPs

Perplexity:

• Research comparable exits
• Find potential acquirers
• Market research

GitHub:

• Clean up repository
• Document codebase
• Prepare for technical DD

Subagents

strategic-think-tank:

• Exit strategy analysis
• Negotiation strategy
• Deal structure optimization

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Handoff

After completing exit preparation:

1. Save outputs:

   • Exit memo → docs/EXIT_MEMO.md
   • Data room → docs/data-room/

2. Log to tracker:

   /tracker log {project-slug} "EXIT: Preparation complete. Valuation range: ${X}-${Y}. Ready for market."
   

3. Update state:

   /tracker update {project-slug} EXITING
   

4. On successful exit:

   /tracker update {project-slug} EXITED
   

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Exit Readiness Quick Check

Minimum Requirements

• 12+ months of financial records
• Clean cap table
• IP properly assigned
• No legal issues
• Customer contracts in order
• Key metrics documented
• Code is documented and clean
• Team dependencies identified

Red Flags for Buyers

Red Flag	Impact	Fix
Messy cap table	Deal complexity	Clean up early
No financial records	Trust issues	Start tracking now
Single customer >50%	Risk	Diversify
Key person dependency	Risk	Document, cross-train
IP not assigned	Deal blocker	Fix immediately
Material litigation	Deal killer	Resolve before

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Anti-Patterns

Anti-Pattern	Why Bad	Do Instead
Waiting until desperate	Weak negotiating position	Plan 12+ months ahead
Hiding problems	Will surface in DD	Disclose upfront
Only one buyer	No leverage	Create competition
Focusing only on price	Miss bad terms	Evaluate full package
No advisor	Make mistakes	Get help on first exit
Neglecting business during sale	Value erodes	Keep running hard

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Quality Checks

Before starting exit process:

• Exit readiness score >25
• Financial records clean and current
• Legal issues resolved
• Data room 80%+ complete
• Valuation expectations realistic
• Exit timeline defined
• Key decisions documented