Methodology

The Research Behind Hexiss

Built on evidence. Designed for decisions.

Every question in the Hexiss assessment traces back to research on what influences whether a business survives, transfers, and holds its value. The goal was not to create another business checklist.

The goal was to identify the conditions that consistently shape business readiness, the factors that determine whether a company can withstand change, operate independently, and create options for the future. Hexiss was built from decades of research across business failure prediction, organizational resilience, operational systems, ownership transition, and transaction-market data.

The foundation

A systematic review, not a hunch.

The framework was developed through a structured review of 58 sources using a PRISMA-adapted review process. Sources were evaluated based on the strength of evidence they could provide.

Not all research answers the same questions. Some sources show broad patterns across large populations. Others reflect what happens in real transactions and advisory settings. Hexiss separates those levels of evidence rather than treating every finding as equal.

Strong Evidence

Replicated and official research

Peer-reviewed studies, meta-analyses, and government data with large samples and repeated findings.

Examples
  • Business failure prediction research
  • U.S. Bureau of Labor Statistics survival data
  • SBA economic research
Market Evidence

Real-world transaction and practitioner data

Research from business transactions, owner surveys, and advisory organizations. Valuable for understanding market behavior, while clearly identified as market evidence rather than controlled research.

Examples
  • IBBA Market Pulse
  • Pepperdine Private Capital Markets
  • Exit Planning Institute research
Review Standards

Methods used to maintain discipline

Research standards used to ensure consistency in how evidence was collected and reviewed.

Example
  • PRISMA 2020 reporting guidelines
What research consistently shows

How the Questions Were Chosen

Each question measures a pattern that research has repeatedly linked to stronger business outcomes.

Financial health is the strongest survival signal.
A business's ability to generate sufficient cash, meet obligations, and withstand financial pressure is one of the most consistently supported predictors of long-term survival. This is why financial health carries the greatest weight in the model.
Failure prediction research (Beaver; Altman)Strong
Closing a business is not the same as failing.
Businesses close for many reasons, including retirement, strategic decisions, or owner choice. Readiness is not about guaranteeing a business never changes. It is about creating options before circumstances remove them.
U.S. Bureau of Labor Statistics survival data; census analysisStrong
Owner dependency limits the value of everything else.
A business can have strong revenue, loyal customers, and healthy margins while still being structurally fragile if critical decisions, relationships, and knowledge exist with one person. Buyers and successors place less value on what cannot continue without the owner.
Founder research; transaction dataStrong
The principle behind the model

Owner dependency is not a domain. It is a ceiling.

Owner dependency does not simply represent one area of business health. It determines how much value the other areas can actually create.

A company with strong operations and strong financial performance may still be difficult to transfer if everything depends on one person's knowledge, relationships, or decisions. For this reason, Hexiss measures owner dependency through leadership and operational questions, then applies it as a limiting factor across the domains most affected by it.

Systems create transferability.
Knowledge embedded in documented processes, repeatable systems, and shared responsibilities can survive a person leaving. Knowledge that exists only in someone's head leaves with them. Documentation and operational clarity are among the clearest ways businesses reduce dependency and increase resilience.
Knowledge transfer and operations researchModerate–Strong
Customer concentration creates continuity risk.
A major customer can be valuable while also creating vulnerability. When too much revenue depends on one relationship, the business becomes more exposed to disruption and less attractive to future buyers.
IBBA Market Pulse; transaction researchModerate
Most owners plan to transition. Few are prepared.
Many owners expect to eventually exit their business, but far fewer have documented plans, developed successors, or built a company that can transition smoothly. The gap is not intention. The gap is readiness.
Exit Planning Institute researchModerate
Why these questions

Seven domains. One readiness model.

Research consistently points to seven interconnected areas that shape business readiness. Each question in Hexiss belongs to one of these domains and exists because it connects to a documented business condition, not because it simply sounds useful.

01
Financial Health
The ability to sustain performance, manage obligations, and maintain financial resilience.
02
Leadership & Succession
The depth of leadership and the ability to transition responsibility.
03
Operational Independence
The degree to which the business can function without constant owner involvement.
04
Customer & Market Position
The strength, stability, and defensibility of revenue sources.
05
People & Culture
The ability of the team and organization to support continuity.
06
Direction & Focus
The clarity of priorities, strategy, and decision-making.
07
Risk & Continuity
The ability to identify and prepare for disruptions.
Domain weighting

Each domain is weighted according to its relative impact on business readiness.

Financial Health
Leadership & Succession
Operational Independence
Customer & Market Position
People & Culture
Direction & Focus
Risk & Continuity
.Lower weightHigher weight

Weights are fixed across businesses and applied before owner dependency limitations are considered.

How scoring works

Enough structure to trust the read.

Hexiss does not produce a simple business "grade." A single number can hide the issues that matter most. A business with excellent financial performance but extreme owner dependency has a very different risk profile than a business with average finances and strong operational independence.

A condition band for each domain, describing where it stands
A readiness profile across the business
A prioritized view of where improvement matters most
The boundaries of the model

What the assessment is designed to measure.

Credibility comes from being precise about what the evidence supports. Hexiss is designed to provide an evidence-informed assessment of business readiness. It is not presented as a guaranteed predictor of future outcomes.

The model does not currently claim:

Statistical validation of the instrument. The questions demonstrate content validity by mapping to established research. Predictive validation requires response data collected over time.
A certified owner-dependency scale. The impact of owner dependency is well supported in research. Hexiss applies this concept as a model limitation rather than claiming a separately validated measurement scale.
That market data equals scientific proof. Transaction and survey research are presented as market evidence and labeled accordingly.
That widely cited estimates are exact. Business survival and transition statistics often contain definitional and sampling limitations. Hexiss presents them with appropriate context.
Where to next

See it for yourself.

Screening

Take the Business Stress Test

A 22-question screening assessment designed to provide a fast, directional view across the seven domains.

Start now The framework

Explore the Complete Readiness Model

See the full framework behind the assessment and how the seven domains work together.

Explore the model