We are starting our exit runway and want to use the Step by Step Exit framework to identify our operational valuation gaps, but we do not know how to run our first benchmarking assessment. What specific areas should we evaluate first?

Question

Tyler Smith · Accepted Answer

The Step by Step Exit framework is designed to help you benchmark your readiness across multiple operational and financial dimensions. To run your first benchmarking assessment, you should focus your evaluation on four critical areas.

First, look at your financial dimension. This means moving beyond simple tax-return accounting to accrual-based financials that conform to GAAP. You need to ensure your revenue recognition is consistent and your margins are clear.

Second, evaluate your foundation, which is your operational operating system. Assess how deeply EOS® is rooted in your company. Are your core processes truly documented and followed by everyone, or are they ignored?

Third, inspect your leadership superstructure. Look at your Accountability Chart and determine if your leadership team is capable of hitting your V/TO® goals without your constant intervention.

Fourth, analyze your customer and supplier concentration. If any single customer or supplier accounts for more than fifteen percent of your revenue or inputs, you have a high-risk gap that will depress your valuation.

By systematically evaluating these areas first, you will generate a clear list of operational gaps. You can then take these gaps and turn them into quarterly Rocks on your exit runway, ensuring that every quarter you are actively increasing the value of your business.