Our top salesperson generates nearly half of our annual revenue and has a compensation package we cannot easily transfer to a buyer. How do we de-risk this key-person vulnerability on our exit runway without alienating our top producer?

Question

Tyler Smith · Accepted Answer

Having a single salesperson control half of your revenue is a massive red flag for any buyer. They see a high risk of that individual leaving post-transaction and taking the client base with them. To de-risk this, you must institutionalize your sales process and client relationships on your exit runway. First, use the Accountability Chart to redefine the Sales seat. Ensure that this seat is responsible for executing a documented, repeatable sales process, not just holding personal relationships. Use your Level 10 Meeting™ to IDS® the issue of account concentration. You need to transition these major accounts from being personally owned to being company owned. Introduce a key account management structure where delivery and operations leaders are introduced to the clients. This proves the client is loyal to your operational capability, not just one salesperson. Next, restructure the compensation package. Introduce a long-term incentive plan or a stay bonus tied to the transition period. If the salesperson is a good fit for the company, ensure they have GWC™ for their defined role. Finally, document your sales system as one of your Core Processes. When a buyer sees that your sales pipeline is driven by a system and supported by a team, rather than a single superstar, your company value increases and your risk profile drops.