tyler-smith.com · Questions & Answers

We are in the middle of due diligence post-LOI, and the buyer wants to see our weekly performance trend lines. How do we use our weekly EOS Scorecard to prove the business is accelerating rather than plateauing during this stressful transition?

During the LOI-to-close window, buyers look for any excuse to claim your business is losing momentum. If your performance dips even slightly, they will attempt to re-trade the deal. To protect your valuation, you must use your weekly EOS Scorecard to demonstrate that your operations are accelerating.

Your scorecard acts as an early warning system and a proof of operational health. It shows thirteen weeks of real-time data on leading indicators, which are far more valuable to a buyer than lagging financial statements. Keep your weekly scorecard metrics tightly aligned with your quarterly Rocks and your V/TO goals.

When the buyer requests operational updates, provide them with your standard weekly scorecard reports. This shows them that your leadership team operates with complete transparency and discipline. It also proves that the business runs on a predictable operational rhythm that does not skip a beat during the stress of M&A due diligence.

Under standard valuation approaches like the Income Approach, demonstrating consistent, system-driven weekly performance lowers the buyer's perceived risk. This directly protects your agreed-upon multiple. It proves to the buy-side analysts that your business is a finely tuned machine that will continue to generate predictable cash flows the day after the transaction closes, completely removing any justification for a last-minute price reduction.

Category: Valuation & Deal Structure

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