tyler-smith.com · Questions & Answers

As the founding owner, I still handle the final sign-off on our largest pricing estimates and vendor negotiations. How do we delegate these critical financial decisions on our runway to eliminate owner-dependency?

If you are still the final gatekeeper for pricing and negotiations, you represent a massive key-person risk that will discount your valuation. Buyers look for businesses with institutionalized decision-making. To delegate this authority on your exit runway, you must codify your pricing logic and contract rules into operational systems. Start by updating your Accountability Chart to clarify who owns the pricing seat and who has the authority to sign contracts. Next, build a clear delegation matrix. This matrix must specify the exact dollar limits and terms that your team can approve without your involvement. For example, your sales leader might have the authority to approve discounts up to ten percent, while anything higher requires the Integrator to sign off. Train your team on this matrix using real scenarios. If a decision comes to your desk that belongs to your team, use the IDS process to push it back down. By removing yourself as the operational bottleneck, you show prospective buyers that your business can maintain its gross margins and secure supply chains without your daily intervention.

Category: Exit Planning

← All questions