We are preparing to market our company and want to know how strategic buyers and financial sponsors value our operational operating system differently. How do we tailor our presentation of our EOS® processes to maximize our multiple with each buyer type?

Question

Tyler Smith · Accepted Answer

Strategic buyers and financial sponsors look at your operational systems through entirely different lenses, and you must tailor your presentation accordingly. A strategic buyer usually has their own operating model and back-office systems. They are looking for synergy and market share.

When presenting to a strategic buyer, highlight how your EOS® processes, especially your documented core processes and customer onboarding workflows, will integrate smoothly into their existing platform. Focus on showing that your team is highly disciplined and can execute their strategic plan without operational disruption.

In contrast, a financial sponsor, like a private equity firm, is buying your business as a platform or an add-on. They want a self-sustaining machine. When pitching to a financial sponsor, emphasize your Accountability Chart and the fact that your leadership team runs the business autonomously using Level 10 Meetings™ and weekly Scorecards. Show them that you have a complete management team that gets, wants, and has the capacity (GWC™) to grow the business without the founder. The financial sponsor will pay a premium for a turn-key operational superstructure because it reduces their management burden and accelerates their investment timeline.