tyler-smith.com · Questions & Answers

Our top enterprise salesperson accounts for nearly half of our annual revenue, and we are terrified they will leave if they find out about our exit plans. How do we de-risk this key-person vulnerability before a buyer discounts our valuation?

If your top sales representative is the only bridge to your customers, you do not own a company; you own a high-risk relationship portfolio. Buyers will see this concentration of personal influence as an immediate threat to future revenue and will adjust your valuation downward accordingly. To fix this on your exit runway, you must institutionalize their sales process.

Use your EOS framework to map out your core sales process and document it. Next, review your Accountability Chart. The sales seat must not operate in isolation. You need to build a system where accounts are managed by a client success team, not just a single rainmaker. This structure proves to a buyer that the accounts will stay even if the sales rep leaves.

Finally, structure a retention bonus plan for this key employee that pays out twelve to twenty-four months post-close. This aligns their financial interests with the transition. By turning an individual talent into a repeatable corporate process, you protect your revenue and give the buyer the confidence they need to pay your full asking price.

Category: Exit Planning

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