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Nowadays manufacturing companies are struggling with the transition towards a Circular Economy focused on sustainable production and consumption. The transition from linear business models to a Circular Economy is a great opportunity for industrial organizations to gain competitive advantage while decoupling economic growth from resource extraction and waste generation. However, manufacturing companies frequently fail in understanding where to start in approaching such a systemic transition, as fundamental changes are needed in the design of products, production processes, business models and supply chains. Moreover, scientific literature has only recently started to discuss Circular Economy extensively, still giving little support in understanding how it can be introduced in industrial organizations. To provide a first attempt into filling this gap, this paper proposes a model to assess the readiness of manufacturing companies for the Circular Economy paradigm. A review and a critical comparison of existing tools is carried out. Based on this review, a readiness assessment model is then proposed. The model provides an improved understanding of Circular Economy for manufacturing firms, supporting them in assessing their potential and giving insights on where to start to address such transition.