The six focus areas in the DealFax operational readiness framework are not proprietary inventions. They are drawn from established academic research on M&A transaction dynamics, practitioner literature from the IBBA and AM&AA, and publicly available datasets from the Bureau of Labor Statistics, U.S. Census Bureau, and OSHA. This page documents the evidence basis for each area of assessment.
A DealFax assessment draws from three independent sources. Each layer contributes something the other two cannot provide alone. The goal is a scored picture that is grounded in documented evidence and external context - not solely in what the owner reports about their own business.
When a business is engaged, DealFax identifies its NAICS code, firm size class (by employee count and revenue band), and primary geographic market. These three parameters are used to pull the relevant cut from each dataset - so a 28-person HVAC contractor in a Northern Virginia county gets benchmarks specific to specialty trade contractors of that size in that labor market, not a national HVAC industry average. This specificity is the core of what makes DealFax benchmarks actionable rather than generic. The full data stack - nine public datasets in three groups and what each provides - is documented in the Data Stack section below →
The six focus areas reflect operational dimensions that are documented in M&A practitioner literature and academic research as factors that affect how transactions are structured and priced in owner-operated lower-middle market businesses. Each area also maps to at least one publicly available dataset that provides an independent benchmark.
The six focus areas are scored on the 30 dimensions below: 7, 6, 5, 5, 4 and 3, with 58, 55, 50, 47, 45 and 45 indicators, 300 in all. Each dimension carries a weight within its focus area and scores Red (1.0 to 1.9), Orange (2.0 to 2.9), Yellow (3.0 to 3.9) or Green (4.0 to 5.0) against written anchors. Each Y answer on an indicator marks a risk condition present; higher Y counts reduce the dimension score. A Red score in a critical dimension caps the focus area rating at Orange. The table lists every dimension, its weight, its input type and the primary evidence source. The full written rules are available on request. Source: DealFax Scoring Methodology, DealFax LLC (2026).
| Dimension | Input Type | Primary Evidence Source |
|---|---|---|
| Area 01 · Owner Dependency | ||
| Decision authority (15%, critical) | Assessor-observed | Document review, assessor observation |
| Customer relationships (15%) | Assessor-observed | CRM data, client interview proxies |
| Vendor relationships (15%) | Assessor-observed | Document review, assessor observation |
| Absence tolerance (15%, critical) | Assessor-observed | SOP review, assessor observation |
| Business development (15%) | Calculated | Revenue analysis, assessor observation |
| Institutional knowledge (15%) | Assessor-observed | Assessor observation, document review |
| Contract authority (10%) | Document-verified | Document review, assessor observation |
| Area 02 · Revenue Quality | ||
| Customer concentration (20%, critical) | Threshold-applied | Revenue records, assessor analysis |
| Revenue type mix (20%, critical) | Document-verified | Revenue records |
| Contract documentation (15%) | Document-verified | Document review |
| Revenue growth vs. market (15%) | Benchmarked | Census CBP, BLS QCEW |
| Pricing consistency (15%) | Document-verified | Invoice review, assessor observation |
| Revenue seasonality (15%) | Benchmarked | Revenue records, assessor analysis |
| Area 03 · Operational Systems | ||
| Standard operating procedure documentation (25%, critical) | Document-verified | Document review |
| Accounting systems (20%) | Assessor-observed | Document review, system verification |
| Field and operations management (20%) | Assessor-observed | System access verification |
| Records and documentation (20%) | Assessor-observed | Assessor observation |
| Technology stack (15%) | Document-verified | Accounting system review |
| Area 04 · Workforce Stability | ||
| Turnover rate (25%, critical) | Benchmarked | BLS JOLTS (NAICS-level) |
| Key person risk (25%, critical) | Assessor-observed | Assessor observation, org review |
| Average tenure (20%) | Document-verified | Payroll data, assessor interview |
| Compensation documentation (15%) | Benchmarked | BLS OEWS / QCEW, document review |
| Retention agreements (15%) | Assessor-observed | Assessor observation, document review |
| Area 05 · Customer Health | ||
| Google rating vs. market (30%, critical) | Benchmarked | Google Places; Census CBP market area |
| Review volume and velocity (25%) | Benchmarked | Google Places, BBB |
| Customer retention (25%) | Benchmarked | CRM data, assessor interview |
| Relationship ownership (20%) | Assessor-observed | Assessor interview, CRM data |
| Area 06 · Succession & Mgmt. | ||
| Management depth (40%, critical) | Assessor-observed | Org chart, assessor interview |
| Transition planning (35%) | Document-verified | Document review |
| Knowledge documentation (25%) | Document-verified | Document review |
Every DealFax report draws from nine public datasets in three groups: Bureau of Labor Statistics data, federal and state regulators, and commercial and public platforms. Each is pulled for the owner's sector, address and metro area. Not national averages. Not generic sector data. The benchmark that applies to a 28-person heating and air conditioning contractor in Northern Virginia is the one for that trade, that size and that market.
Public wage, turnover and survival data. These datasets provide the context that makes a business's own numbers meaningful: how long comparable firms last, what each role is paid in the metro area, and how the sector hires and loses people.
| Dataset & coverage | Source | What DealFax extracts |
|---|---|---|
| BLS Business Employment Dynamics (BED) | U.S. Bureau of Labor Statistics | Survival rates by establishment age; how this firm's longevity compares. |
| BLS Occupational Employment & Wage Statistics (OEWS) | U.S. Bureau of Labor Statistics | Wages by role and metro; pay gaps that put staff at risk of leaving. |
| BLS JOLTS & Quarterly Census of Employment & Wages (QCEW) | U.S. Bureau of Labor Statistics | Sector turnover and local job growth; a check on the owner's hiring story. |
Records about the specific business: workplace safety history, license standing and entity filings. These are the public records a buyer finds in diligence. Automated pulls of these records, records the owner uploads, and automated checks of them come with the 2027 launch.
| Dataset & coverage | Source | What DealFax extracts |
|---|---|---|
| OSHA Inspection Records API | U.S. Department of Labor, Occupational Safety and Health Administration | Citation history at the address; open safety issues a buyer inherits. |
| State Contractor Licensing Board (for example, Virginia DPOR) | The licensing board for the state where the business operates | License status, expiry and holder; a license that may not transfer at sale. |
| State Corporation Commission (for example, Virginia SCC) | The corporation commission or secretary of state for the state of formation | Entity standing, formation date and liens; liabilities that could stall closing. |
Reputation and market context. Reputation data is a public, buyer-facing signal about the health of the customer base; Census counts show how crowded the market is.
| Dataset & coverage | Source | What DealFax extracts |
|---|---|---|
| Google Places API | Star rating, review count and yearly trend; a reputation rising or fading. | |
| Better Business Bureau (BBB) | Better Business Bureau | Accreditation, rating and complaints; what a buyer finds in diligence. |
| U.S. Census Bureau (CBP & ABS) | U.S. Census Bureau, County Business Patterns and Annual Business Survey | Establishment counts and owner succession rates; how crowded the market is. |
The TRUST Index is an assessor-observed evaluation of the seller's own readiness to drive a successful transition - independent of the business's operational score. It addresses a gap in standard operational due diligence: a business can be operationally ready while the seller is not, and vice versa.
The TRUST Index is not self-reported. Scores are assigned by the assessor based on observed behavior, document evidence, and interview responses. Three design principles prevent gaming. First, each dimension must be assessor-observed - the owner cannot self-report a high score. Second, documentary evidence is required to reach the upper score levels - without it, the score is capped at a defined ceiling regardless of what the owner says. Third, the most critical dimensions are cross-referenced against independently verifiable sources, so discrepancies between what the owner represents and what the record shows are surfaced during the assessment.
| Dimension (weight) | What It Measures | Evidence Required for High Score |
|---|---|---|
| Transparency & Responsiveness (25%, critical) | Seller's cooperation with the assessment process - document provision, response completeness, and accuracy of information provided | Timely document delivery; no material omissions identified in cross-reference against public records |
| Knowledge Transfer Readiness (25%, critical) | Extent to which institutional knowledge has been documented or delegated prior to the assessment | SOPs, org chart, documented client introduction plan; evidence of delegation in place |
| Commitment to Exit (20%) | Clarity and conviction of the seller's exit timeline and readiness to execute a transition within a defined window | Documented exit timeline; no evidence of ambivalence or undisclosed contingencies that would affect timing |
| Relationship Introduction Willingness (15%) | Whether key client and vendor relationships have been introduced to a successor or documented for transfer | Evidence of relationship introduction; documented contacts independent of owner's personal network |
| Post-Close Transition Support (15%) | Seller's demonstrated willingness and practical ability to support post-close operations during the transition period | Documented availability commitment, defined consulting scope, timeline clarity, no conflicts with other obligations |
Five dimensions, 50 binary indicators. Each scores Red (1.0 to 1.9), Orange (2.0 to 2.9), Yellow (3.0 to 3.9) or Green (4.0 to 5.0). A Red score in a critical dimension caps the TRUST Index rating at Orange. Owner readiness supports the business score; it is not the focus. Source: DealFax Scoring Methodology, DealFax LLC (2026).
The written scoring rules for the six focus areas and the five owner readiness factors are available to advisors, academic researchers and practitioners on request.
Request the Scoring Rules