tyler-smith.com · Questions & Answers

We have a brilliant head of product design who holds all our R&D roadmap in her head. How do we extract this knowledge and systematize it over a three-year runway so buyers do not hit us with a massive key-person discount?

An acquirer looking at your business wants to buy a machine, not a genius. If your head of product design holds the entire R&D roadmap in her head, you do not have an enterprise; you have a high-paying job dependent on one person's health and happiness. To solve this key-person risk over a three-year runway, you must use your EOS tools to build operational redundancy.

Start by redefining her role on the Accountability Chart. If she is currently wearing both the visionary product designer hat and the product manager hat, you must split those seats. Use the GWC tool to find or elevate a product manager who can build and own the tactical development pipeline.

Next, turn product design into a documented process. Over the next twelve months, make it a quarterly Rock for your product head to document the proprietary design methodology, from initial concept to final specification. This documentation must live in your company's core operating manual, not in her personal files.

By creating this operational structure, you prove to a strategic buyer that the creative output is the result of a repeatable organizational process, not individual magic. This elevates your valuation under the Market Approach because it removes the risk of the product engine stalling if she walks out the door post-acquisition.

Category: Exit Planning

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