We are five years away from a transition and want to know how to sequence our exit preparation. What concrete milestones should we hit in the first twenty-four months of our runway to ensure we do not waste this critical lead time?

Question

Tyler Smith · Accepted Answer

Preparing for a transition five years out requires a disciplined sequencing of your exit preparation. In the first twenty-four months of your runway, your priorities must center on structural and financial health. This is where you lay the foundation for a premium valuation. Your first milestone is to separate your personal financial life from the business completely. Every personal expense, owner-related perk, and non-essential lifestyle cost must be scrubbed from your records. This creates a clean trail of earnings that a buyer can easily verify. Next, focus on your corporate credit profile. Many owners overlook this, but a strong corporate credit score and independent credit facilities show buyers that the business can fund its own operations post-sale without relying on personal guarantees from the founder. Finally, utilize your EOS Accountability Chart to address the foundation of your operations. Your goal in these first two years is to elevate your leadership team so that you, the owner, are no longer operating in any critical seat. Use the Step by Step Exit framework to identify where the business is dependent on you and systematically delegate those responsibilities. By hitting these milestones early, you build a business that is highly profitable and easier to run today, while ensuring you are ready when the transaction runway begins in earnest.