tyler-smith.com · Questions & Answers

How do we keep our leadership team focused on executing our quarterly Rocks and hitting budget when an acquisition process demands twenty hours a week of executive time?

Deal fatigue is the single greatest threat to business valuation during the final six months of an exit. When an owner and key leaders spend twenty hours a week responding to auditor data requests, customer diligence interviews, and legal reviews, core operations inevitably suffer. If revenue dips or a quarterly profit target is missed while you are under exclusivity, the buyer will immediately demand a price discount or walk away.

You protect operational focus by building a strict firewall between the transaction work and the operational leadership team. Your Integrator and department heads must stay eighty percent focused on their standard seats and quarterly Rocks. Do not invite your entire team into deal meetings or data room coordination.

Delegate the diligence heavy lifting to an external M&A advisor and a dedicated transaction CPA. Inside the business, appoint one single individual, such as a controller or finance manager, to act as the internal traffic controller for document requests. Address deal priorities outside of standard operational cadences. Never let due diligence issues bleed into your weekly Level 10 Meeting. That ninety-minute block must remain ruthlessly dedicated to solving everyday customer, employee, and process issues using the Issues Solving Track (IDS).

If you notice operational Scorecards turning red, hit pause on buyer demands. Remind your deal team that protecting current EBITDA is worth vastly more than answering an auditor document request three days faster.

Category: Exit Planning

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