We want to test our actual exit readiness before we hire an investment banker. What are the specific internal indicators on our Accountability Chart and V/TO that prove we are ready to go to market, and how do we audit them?

Question

Tyler Smith · Accepted Answer

You are ready to go to market when your business can run flawlessly without your daily involvement. To audit this, look directly at your Accountability Chart and V/TO®.

First, audit your Accountability Chart. Your name should not be in any seat other than Visionary, and ideally, you have already transitioned that seat to a capable successor. Look at the seats directly below you. Every seat must be filled by someone who truly gets, wants, and has the capacity to do the job. If your Integrator or any department heads still rely on you to solve their daily issues, you are not ready.

Second, look at your V/TO®. A buyer wants to see that your strategy is institutionalized. Your leadership team should be setting and hitting their quarterly Rocks without your direction. If your quarterly goals and traction depend on your personal execution, your business is still too owner-dependent.

Run a simple test. Take a thirty-day vacation where you are completely unplugged. No emails, no phone calls, and no Level 10 Meeting™ attendance. If your team maintains their weekly scores, resolves issues using the IDS™ process, and hits their targets while you are gone, you have a highly transferable business that will command a premium multiple.