As we prepare the business for an exit, how do we structure our leadership team to show prospective buyers we have a self-managing executive layer that does not rely on the owner for day-to-day operations?

Question

Tyler Smith · Accepted Answer

A buyer does not want to purchase a business that is completely dependent on the owner. If you are still making the final decisions on daily operations, your business is not exit-ready. To maximize your value, you must build a leadership team that operates autonomously.

Start by using the Accountability Chart to completely transition your daily operational roles to your leadership team. If you are currently sitting in any seat other than the Visionary seat, you must find a way to delegate those roles. Your leadership team must have full ownership and accountability for their respective functions, with clear metrics on the Scorecard to prove their success.

Next, implement a strict delegation process. When issues arise, resist the urge to step in and solve them. Instead, force your leadership team to use the IDS® process during their weekly Level 10 Meetings™ to resolve issues independently. If they come to you for a decision, ask them what they recommend and empower them to make the call.

By proving that your leadership team can execute Rocks, run Level 10 Meetings™, and manage their departments without your daily involvement, you build a powerful, exit-ready superstructure. This operational autonomy is exactly what buyers look for, and it will dramatically increase your company's value.