tyler-smith.com · Questions & Answers

We are exactly five years away from our target exit date and have zero exit planning in place. What are the first concrete changes we need to make to our weekly EOS rhythm today to ensure this runway actually yields a premium valuation?

Starting five years out means shifting your leadership focus from daily firefighting to building transferable value. The first concrete change is to alter how you set your quarterly Rocks. Instead of focusing solely on short-term sales goals, you must dedicate at least one Rock per quarter to institutionalizing your business operations. This begins with a deep audit of your Accountability Chart through the lens of a buyer. Look for seats where a single person holds multiple critical roles, especially yourself. Use your weekly Level 10 Meeting to identify and resolve these structural dependencies. You should also start tracking value-related metrics on your weekly scorecard, such as customer retention rates, gross margins by product line, and the percentage of revenue generated without your direct involvement. Five years is the ideal timeline because it gives you enough quarterly cycles to prove to a buyer that your operational improvements are permanent and sustainable, rather than a last-minute attempt to dress up the financials.

Category: Exit Planning

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