We are three years away from a potential exit, but we do not know where to start our preparation. What is the best way to baseline our current operational health and identify our valuation killers?

Question

Tyler Smith · Accepted Answer

To build a successful exit runway, you cannot rely on guesswork. You need a systematic, data-driven assessment of your operational health. Start by conducting a thorough diagnostic of your business across multiple dimensions, including financial hygiene, operational foundation, leadership strength, and customer concentration. This assessment helps you establish your current valuation baseline and highlights the hidden risks that a buyer's due diligence team would inevitably exploit to lower your price. Once you identify these valuation killers, you can systematically address them using your EOS® framework. For example, if the assessment reveals that your customer retention data is weak, you can assign a quarterly Rock to clean up and analyze that data. By starting with a clear, objective assessment, you ensure that every hour and dollar you invest on your exit runway is directly targeted at maximizing your enterprise value and creating a clean, transferrable business.