tyler-smith.com · Questions & Answers

We want to know if our leadership team is truly running the business without our daily input before we hire an investment banker. What specific operational patterns or behaviors signal that the organization is ready to survive a rigorous due diligence process?

An operating system is self-sustaining when your presence is no longer the bottleneck for daily decisions. To assess exit readiness, look for three clear behavioral signals. First, look at your weekly Level 10 Meeting™ archives. If issues are raised, debated, and resolved by the leadership team without you speaking, your team has developed true issue resolution capability. Second, review your weekly Scorecard. A buyer wants to see that the numbers are green because the system works, not because you stepped in to save a failing account. If the Scorecard has been predictable for four consecutive quarters without your intervention, that is a green light. Third, check the Accountability Chart. Every seat must be filled by someone who has the GWC™ (Gets It, Wants It, Capacity to Do It) for their role, and your name must only appear in the Visionary seat. If you are still filling operational gaps, you are not ready. Buyers pay a premium for a turn-key business. If your team can predict obstacles and hit their quarterly Rocks without your daily guidance, your platform is operationally ready for a transaction.

Category: Exit Planning

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