tyler-smith.com · Questions & Answers

We are five years from our target exit. Instead of focusing on growth, what fundamental architectural shifts must we make to our corporate structure and Accountability Chart today to ensure the business is sellable then?

Five years out is the time to rebuild your organization's architecture for scalability and transferability. The first step is decoupling your identity from the corporate structure. You must audit your current Accountability Chart and identify every seat where your name is listed.

If you occupy multiple seats, especially the Integrator, sales leader, or head of product, you must make it your primary mission to fill those seats with competent leaders who have GWC™, meaning they get it, want it, and have the capacity to do it.

Additionally, you need to transition your corporate entities and legal structures. Work with your tax and legal advisors to clean up any complex entity holdings or sister companies that muddy your operational reality. Simplify your corporate structure so that a buyer can easily conduct due diligence on a single, clean operating entity.

You should also focus on standardizing your financial systems. Move from cash-basis accounting to accrual-basis accounting, and ensure your monthly financial statements are fully reconciled.

By starting this architectural shift five years out, you give your new leadership team enough runway to make mistakes, self-correct, and prove they can run the company. A buyer is looking for a history of consistent performance under the current management team, not a sudden transition right before the sale.

Category: Exit Planning

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