tyler-smith.com · Questions & Answers

We are preparing our business for acquisition in two years, and our investment bankers want us to clean up our team structure. How do we use our Accountability Chart to prove to buyers that the business can run profitably without the current ownership group?

Buyers pay a premium for systems and predictability, not for individual superstars or hands-on owners. To prepare for an acquisition, your Accountability Chart must show a clear, fully functioning leadership team that does not rely on the ownership group for daily operations.

First, look at every seat currently occupied by an owner. You must systematically replace the owners' names in those seats with non-owner employees who have perfect GWC for the roles. If you are the founder and currently occupy both the Visionary and Integrator seats, you must hire or promote an Integrator to run daily operations. Your name should ideally only remain in the Visionary seat, with roles strictly limited to long-term strategic relationships and major deal-making, or removed entirely from daily operations.

Second, ensure that every seat on the chart has a clear, documented system behind it. Buyers will look at the Accountability Chart to see who owns what, and then they will look for the Standard Operating Procedures that govern those seats. If a seat owner leaves post-acquisition, the buyer needs to know that anyone with the right GWC can step into that seat and run the system. By presenting a clean, owner-independent Accountability Chart, you demonstrate to buyers that they are purchasing an automated, scalable cash-flow engine rather than a job.

Category: Accountability Chart & Seats

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