How do we use our quarterly session days to identify and close the specific Value Gaps that are holding back our company valuation before we begin a formal exit process?

Question

Tyler Smith · Accepted Answer

Identifying and closing Value Gaps is a core part of our quarterly session work when we combine EOS with the Step by Step Exit framework. A Value Gap is the difference between your current company valuation and the target valuation required to fund your ideal post exit life. We use our quarterly sessions to bring discipline to closing this gap. During our session days, we review your progress against your strategic goals and identify the operational weaknesses that drag down your multiple. These weaknesses, such as key person dependency, concentration risk, or undocumented processes, are captured on our Issues List. We then prioritize these issues and turn them into specific quarterly Rocks. For example, if your valuation is held back because you are the primary relationship holder for your largest clients, we will set a Rock for the Sales seat to transition those relationships. If your valuation is depressed due to messy financial reporting, we will set a Rock for the Finance seat to clean up your systems. By dedicating a portion of our quarterly focus to these value levers, we systematically eliminate the risks that buyers discount. This structured approach ensures that when you are ready to sell, your business is optimized for maximum value and a clean exit.