tyler-smith.com · Questions & Answers

We have several long term employees who are great culture fits but are hitting their ceiling as we scale toward our exit target. How do we restructure our Accountability Chart to maximize transaction value without triggering a wave of resignations before the sale?

To maximize valuation, your Accountability Chart must reflect the future needs of the business, not its historical legacy. Buyers look at your team and ask if they can scale the company to the next level. If key seats are filled by people who have hit their ceiling, the buyer will discount your price to budget for recruitment costs.

Handling this on your exit runway requires extreme care and radical candor. Do not make sudden, sweeping changes. Instead, use your quarterly EOS® planning sessions to look at your Accountability Chart with a three year horizon. Identify where the gaps will be.

When a legacy employee no longer possesses GWC™ for a growing seat, do not automatically terminate them. Instead, look for a different seat where their skills and core values fit perfectly. For example, a founder level sales director might be better suited as a senior account manager, allowing you to hire a strategic sales leader above them.

Keep your team focused on the company's core values and vision from the V/TO®. Frame chart adjustments as necessary steps to support the company's next phase of growth. By proactively addressing these talent gaps on your runway, you build a high performing leadership team that buyers will happily pay a premium to acquire.

Category: Exit Planning

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