Buyers grade every deal before they make an offer. They just never tell you the grade. The Grade Thesis gives you the grading system so you know exactly where your business stands — and what it will take to move up — before a buyer makes that determination for you.
The Grade Thesis is the detailed breakdown of each deal grade in the Deal Grade Framework — what creates each grade, what it means for your exit multiple, and exactly what a buyer sees when they evaluate a business at each tier.
A+ Deal — The Titan — 110% to 125% of Market Value
The Titan is above market. This is not luck — it is the result of intentional, documented preparation that starts years before the business ever goes to market. When a Titan-grade business enters the market, buyers compete to win it. The seller controls timing, structure, and terms. Multiple LOIs arrive. The process resembles an auction more than a negotiation.
What creates Titan status: Exit Ratio 360™ Green across all nine frameworks. Titan Thesis documented and presentable. Three or more years of auditable, growing financials. Zero single-customer concentration above 15%. Business operates independently for 90 days without the founder. Advisor team assembled before going to market. Multiple buyer types qualify — strategic acquirers, private equity, family office.
The Titan does not happen by accident. It is built. Learn how: The Titan Thesis — 5-4-3-2 Years Out →
A Deal — The Alpha — 100% to 110% of Market Value
The Alpha is a well-run business receiving full market value. Buyers are interested and qualified. The seller has strong leverage. Financials are clean, operations are solid, and there are no deal-killing red flags. The Alpha owner did not necessarily prepare specifically for exit — they just ran a good business. Full value is the reward for running a good business. Premium value is the reward for preparing for exit specifically.
What creates Alpha status: Exit Ratio 360™ mostly Green with a few Yellow scores. Clean financials for two to three years. Some systems documented, some still owner-dependent. One or two areas of concentration risk present but not critical. Deal closes but seller does not fully control timing or structure.
B Deal — The Bravo — 80% to 95% of Market Value
The Bravo has real value but buyers see risk and price it in. The seller walks away with a good outcome — but leaves 15 to 20 points on the table. On a $10M deal that is $1.5M to $2M left behind. On a $50M deal that is $7.5M to $10M. Bravo is the most common outcome for owners who started thinking about exit 12 to 18 months before going to market. The Bravo owner ran a good business — they just did not build it for transfer.
What creates Bravo status: Exit Ratio 360™ mixed Yellow and Red scores. Owner still involved in key relationships and decisions. Financials clean but growth story is flat or inconsistent. One earnout or seller note required to bridge the valuation gap. Single buyer or limited competition in the process. Extended reps and warranties required at closing.
C Deal — The Charlie — 70% to 80% of Market Value
The Charlie is discounted. Buyers see more risk than opportunity. The offer reflects it. The owner is shocked — because they have been inside the business and cannot see what the buyer sees from the outside. The gap between what the seller expects and what the buyer offers is not a negotiating tactic. It is a diagnosis. Charlie sellers typically reject the first offer, sit on the market too long, and eventually accept something close to what they were initially offered — except now they have lost time, momentum, and sometimes key employees who left during the process.
What creates Charlie status: Exit Ratio 360™ predominantly Red scores. High founder dependency — business slows measurably without the owner present. Customer concentration above 25% in one or two accounts. Financials with adjustments, gaps, or owner-benefit add-backs that require explaining. No management team that survives post-close intact. Earnout, seller note, and clawback provisions all required to close.
D Deal — The Dead Deal — 50% or Less
At 50% the buyer is paying asset value plus a small operational premium. They are not buying a business — they are buying raw material and betting they can fix it themselves. Most Dead Deals never close. The ones that do close at prices the seller never anticipated when they first decided to sell. A Dead Deal is not bad luck. It is a predictable outcome of specific, identifiable problems that existed long before the business went to market.
Seven specific problems create Dead Deals. Every one of them is diagnosable. Every one of them is fixable with enough lead time. Learn the full diagnosis: Dead Deal — The 7 Deal Killers →
The Grade at a Glance
| Grade | Name | Market Value | Buyer Position | Seller Position | Key Signal |
|---|---|---|---|---|---|
| A+ | Titan | 110% – 125% | Competing | Controls all | Multiple LOIs |
| A | Alpha | 100% – 110% | Qualified interest | Strong leverage | Clean at full value |
| B | Bravo | 80% – 95% | Conditional | Some leverage | Earnout required |
| C | Charlie | 70% – 80% | Skeptical | Minimal leverage | Seller surprised |
| D | Dead Deal | 50% or less | Asset buyer | No leverage | Deal falls apart |
How Exit Ratio 360™ Determines Your Grade
Your grade is not an opinion — it is a score. The Exit Ratio 360™ scores your business across nine frameworks totaling 360 points. Green threshold means Titan or Alpha territory. Yellow means Bravo. Red means Charlie or Dead Deal. Every framework you improve moves your grade up and your exit multiple with it.
Score your business across the nine frameworks: LAUNCH | SCORE | SELL | SCALE | DRIVER | EXIT | BENCH | LEAD Model | THREATS
Related Pages
Deal Grade Framework — The full five-grade system overview
Titan Thesis — How to build a Titan-grade business 5 years out
Dead Deal — The 7 specific problems that create D-grade outcomes
© 2026 Scott Sylvan Bell. All rights reserved. Exit Ratio 360™ is a trademark of Aries711 LLC.