We plan to exit our business in three years, but our operational processes only exist in the heads of our key legacy leaders. How do we use the EOS Document and Simplify steps to build transferable enterprise value for a buyer?

Question

Tyler Smith · Accepted Answer

A business that depends on the tribal knowledge of a few key leaders is unsellable, or at best, will be severely discounted by a smart buyer. To maximize your enterprise value for a clean exit, you must turn your company into a turn-key franchise model. This is where the EOS® process component, specifically the Document and Simplify steps, becomes your most valuable tool.

Begin by identifying your core processes, which typically number between six and nine. Do not overcomplicate this step by writing hundreds of pages of tedious standard operating procedures. Instead, document your processes at a high level, capturing the major steps using the 20-80 rule. Document the twenty percent of the steps that yield eighty percent of the results.

Once documented, you must simplify. Eliminate redundant steps, automate administrative tasks using modern AI tools, and ensure every step is clear enough for a new hire to execute. Finally, you must package these processes so they are followed by everyone in your organization. A buyer is purchasing your future cash flows and the predictability of your operating system. By showing them a documented, simplified, and fully adopted set of core processes, you prove that the business can run successfully without you, which dramatically increases your leverage at the negotiation table.