We are entering a ninety-day exclusivity window with a private equity buyer. How do we structure our quarterly Rocks during this intense period so the company does not stall while we pull data?

Question

Tyler Smith · Accepted Answer

Due diligence is an operational hazard. The process of gathering years of contracts, financial files, and employee records requires a massive amount of conative energy from your leadership team. If you try to maintain your normal growth Rocks during this time, your business performance will suffer, which buyers will use as an excuse to renegotiate the purchase price. To protect your valuation, you must pivot your quarterly Rocks. During the ninety-day window, your primary Rock should be to maintain your current revenue and gross margins. Do not launch new marketing campaigns or enter new markets. Focus your team's energy on keeping the core business running smoothly. Create a specific Rock for your Integrator that is dedicated solely to managing the due diligence data requests. This keeps the rest of the leadership team free to focus on their daily operations. Use your weekly Level 10 Meeting to track these targets and ensure that any operational issues are resolved quickly before they catch the buyer's attention.