We just signed an LOI and entered the ninety-day confirmatory diligence phase, but we are terrified the buyer will use minor monthly budget variances to re-trade on our valuation multiple. How do we use our weekly Level 10 Meeting™ and data scorecard to maintain target performance and defend our agreed price?

Question

Tyler Smith · Accepted Answer

The phase between signing the LOI and closing is the most vulnerable period for any business owner. Buyers look for any sign of operational deceleration to justify a price reduction. To defend your valuation, your leadership team must maintain operational traction. You cannot let the distraction of diligence drag down your weekly performance metrics.

Use your weekly Level 10 Meeting™ to compartmentalize the deal. Keep the majority of your leadership team focused entirely on their quarterly Rocks and scorecard measurables. Only the visionary and the integrator should be handling the transaction requests. Your weekly scorecard is your shield. If a buyer points to a minor monthly variance in revenue or client acquisition, you must be able to pull up your historical scorecard data to show that this is a predictable, seasonal variation rather than a structural decline.

When you demonstrate that your business runs on a highly structured cadence and that your leadership team continues to hit their targets without owner intervention, you disarm the buyer's arguments. Showing this level of predictability proves that your EOS®-run business operates as a system, which makes it incredibly difficult for the buyer to justify a markdown. Maintain your weekly discipline, run your meetings on time, and let the data prove your stability.