tyler-smith.com · Questions & Answers

We plan to sell the business within three years. How do we stress-test our leadership team now to ensure the company can operate profitably without my daily involvement before private equity buyers test us?

Buyers discount or walk away from businesses that depend on founder heroics. If you want top-dollar enterprise value, your leadership team must prove it can hit financial targets, solve crises, and drive quarterly Traction with you completely out of the building.

The most effective way to test this is a forced founder step-out. Pick a date six months from now and schedule a thirty-day total absence. No Slack, no email, no emergency phone calls.

Leading up to the test, run your weekly Level 10 Meetings with your Integrator in total command. Your role during the final sixty days before your departure is purely observational. Do not rescue leaders during IDS, do not override decisions, and do not handle client escalations.

During the thirty-day absence, the leadership team must run the company entirely on the EOS operating system: maintaining Scorecard discipline, executing Rocks, and resolving cross-functional roadblocks on their own.

When you return, review the numbers objectively. Did revenue, cash flow, and fulfillment hold steady? Did the team hit their Scorecard measurables? What broke?

The failures you uncover during a planned trial run are gifts. They reveal the hidden structural dependencies and talent gaps you must fix now, rather than letting a private equity audit team discover them during due diligence and slash millions off your valuation.

Category: Leadership Team

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