We have a brilliant head of product development who holds all the key customer relationships and proprietary technical knowledge in their head. How do we de-risk this operational single point of failure before we go to market?
Buyers discount value when a business relies on a single superstar. You must systematically de risk this key person risk on your exit runway. First, use your Accountability Chart to separate the product development function from the relationship management function. If your superstar is in both seats, they are an operational bottleneck. Create a clear division of responsibilities. Next, build a shadow process where a second team member sits in on every key client meeting and product review. This ensures the client relationship belongs to the company, not the individual. Document your proprietary technical knowledge. Have this key person use AI tools to record, transcribe, and structure their unique processes into standard operating procedures. This transforms tribal knowledge into institutional capital. Finally, evaluate if this person has GWC, meaning they Get, Want, and have the Capacity to do the role. If they do, incentivize them. Ensure they are aligned with your exit vision through a performance based retention plan. This gives buyers confidence that the critical knowledge and relationships will remain secure long after the deal is closed.
Category: Exit Planning