tyler-smith.com · Questions & Answers

Our top sales representative brings in nearly forty percent of our total revenue, and we are terrified they will leave or demand equity when they find out we are preparing for an exit. How do we de-risk this individual sales dependency on our runway?

To de-risk this dependency, you must institutionalize the sales process so the relationship belongs to the company, not the individual. Start by auditing your sales seat on the Accountability Chart. Ensure your top producer is not acting as a lone wolf who owns the client data, pricing authority, and post-sale onboarding. Use the EOS® core process framework to document your sales system, turning their personal magic into a company-wide habit. Next, transition your accounts to a team-based management model. Introduce a service delivery lead or an account manager into client meetings, positioning them as the primary operational contact. This structural shift ensures that if your top sales rep leaves, the client relationships remain secure. Address their compensation by structuring retention agreements or performance-based incentives that align their long-term payouts with the successful transition of their accounts. By systematically removing this single point of failure, you build real enterprise value that a buyer will pay a premium for. Furthermore, completing this work today dramatically improves the quality of the business and makes it far easier to run, allowing you to scale operations with less daily friction long before you ever sign a letter of intent.

Category: Exit Planning

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