We are preparing for an exit and our investment banker says we must clean up our historical regulatory compliance and licensing records to pass due diligence. This seat is vacant because the work is incredibly dry and stressful, and nobody on our team wants it. How do we solve this empty seat problem?

Question

Tyler Smith · Accepted Answer

An empty seat that is critical for exit due diligence cannot simply be ignored because the work is tedious. If your investment banker says you need to audit and organize your historical compliance records, you must define this role on your Accountability Chart and assign clear ownership. In EOS, we do not let critical seats remain empty, nor do we allow them to be neglected.

To solve this, first define the exact roles and responsibilities of this compliance seat. Do not look at your current people yet: focus entirely on what the seat needs to accomplish. Once the seat is clearly defined on the chart, look at your team. If nobody has the bandwidth or the desire to own this seat long-term, you have three options.

First, you can assign it as a temporary, short-term seat to a leadership team member who has the capacity, making it a critical Rock for the quarter. Second, you can outsource this function to an external specialist or contractor, placing their name in the seat while assigning an internal leader to be accountable for their output. Third, you can hire a dedicated junior administrator to own the seat under the direct supervision of your Integrator. The key is that one name must sit in that seat, and that person must be held accountable in your weekly Level 10 Meeting. Leaving it blank is an invitation for due diligence surprises that will kill your deal.