tyler-smith.com · Questions & Answers

How do we structure our long-term Rocks so they focus specifically on exit preparation milestones without making the rest of the company feel like we have stopped caring about organic growth?

Preparing for an exit can easily consume all your operational energy, leaving your core business to stagnate. To prevent this, you must segment your leadership team's focus. Use your quarterly planning sessions to divide your corporate Rocks into two distinct categories. One or two members of your leadership team, typically the Visionary and the CFO, should own the Rocks related to transaction readiness, such as financial cleanup and legal preparation. The rest of your leadership team must remain focused on operational excellence, customer retention, and organic growth Rocks. This division of labor keeps the business healthy and growing while you build your exit runway. If your entire leadership team pivots to transaction preparation, your daily performance will suffer, which will immediately tank your valuation during due diligence. Keep your exit strategy conversations confined to your closed-door strategic sessions. When you communicate quarterly priorities to the broader organization through your V/TO®, frame your operational goals around building a world-class, sustainable company. This maintains high team morale and operational momentum, which is exactly what a buyer wants to see when they audit your company's performance.

Category: Exit Planning

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