tyler-smith.com · Questions & Answers

Since we are investing significant time and money into this twenty-four-month engagement with you, what intermediate business metrics should we look at to prove our return on investment before we get to an actual exit?

Return on investment in this system shows up in leading indicators long before an acquisition offer arrives. We track three primary areas of progress throughout our twenty-four months together. First, we look at your team's execution velocity. At the start, teams typically complete less than fifty percent of their quarterly priorities. We look for a steady climb to an eighty percent or higher Rock completion rate within the first three quarters. Second, we measure financial performance stability. A healthy EOS® implementation stabilizes your cash flow and increases your gross margin because your leadership team is aligned on the most profitable activities and holds people accountable to their metrics on the Scorecard. Third, we track the valuation multiplier drivers. By implementing the Step by Step Exit disciplines, we systematically eliminate key-person dependency. If your business can run smoothly for thirty days without the owner's active intervention, your company value instantly increases. We measure progress by looking at your organizational health, your cash reserves, and the documented status of your core processes. These metrics provide a clear picture of your growing asset value.

Category: Working With Tyler

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