Overall Readiness Score: 74/100 — Good. Desert Sun is well-positioned for a sale process with strong operational fundamentals. Three targeted improvements could increase both valuation and buyer pool within 60–90 days.
Operational Readiness Assessment
Desert Sun demonstrates above-average operational readiness for a business of its size and type. The field operations are well-systematized, the team is stable, and the service delivery model does not require daily owner oversight. The primary gaps identified are in documentation formality and transition planning, not in the underlying business quality.
Area
Status
Gap / Action
Operations Manual / SOPs
Moderate
Procedures exist informally; recommend formalizing top 10 SOPs in writing
Customer Relationship Documentation
Strong
ServiceTitan CRM with full customer history; no gaps
Vendor & Supplier Agreements
Moderate
Key distributor relationships are handshake; recommend written agreements
Employee Contracts
Needs Review
No non-compete or non-solicitation agreements with key staff
All licenses current; ROC #312847; fully transferable
Pre-Sale Action Plan (90 Days)
The following actions, if completed prior to or during the marketing period, are projected to increase buyer confidence, reduce due diligence friction, and potentially support the optimistic valuation scenario of $4,200,000.
Week 1–2: Engage employment attorney to prepare non-compete and non-solicitation agreements for the field supervisor and top 3 technicians. Estimated cost: $2,500–$4,000.
Week 2–4: Negotiate a 3-year lease extension at current or below-market rent. A signed lease removes buyer concern about facility continuity.
Week 3–6: Document the top 10 operational SOPs (dispatch protocol, service call workflow, maintenance agreement renewal process, emergency response protocol, vendor ordering). Template format; estimated 20 hours of owner time.
Week 4–8: Obtain written distributor/supplier agreements with key vendors (Carrier, Trane accounts), formalizing preferred pricing and terms.
Week 6–12: Retain a CPA to prepare a Quality of Earnings ("QoE") analysis for FY2021–2023. A QoE report significantly reduces buyer diligence risk and is increasingly expected in transactions above $2M.