tyler-smith.com · Questions & Answers

Our broker says we are ready to sell because the market is hot, but our internal operations still feel like a fire drill. What objective exit readiness signals should I look for within our EOS data to know we are actually ready to list?

Brokers want to list your business when the market is hot because they are transaction-driven, but operational readiness is what actually preserves your valuation during due diligence. To know if you are truly ready to list, look at specific operational indicators inside your EOS metrics. First, check your Accountability Chart. Every seat must be filled by someone who GWCs the role, meaning they get it, want it, and have the capacity to do it. There should be no seat where your name is co-listed with a subordinate. Second, review your EOS Scorecard. You are ready when your leadership team has consistently hit at least eighty-five percent of their weekly measurables for three consecutive quarters without your intervention. This proves to a buyer that the business has a predictable, self-correcting operating system. Third, examine your Process Component. Your core processes must be documented, simplified, and followed by all. When your average employee execution rate matches your standard operating procedures, your business has achieved operational maturity. If your metrics are volatile and you are still stepping in to solve weekly issues during your Level 10 Meeting, you are not ready. Wait until your operating rhythm is boring and highly predictable before you sign a listing agreement.

Category: Exit Planning

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