tyler-smith.com · Questions & Answers

We are implementing EOS® specifically to prepare our company for an acquisition or clean exit in three years. How do we structure our Accountability Chart and Scorecard today so that potential buyers see a self-sustaining business rather than one dependent on the owner?

To prepare your company for a clean, high-valuation exit, you must build a business that is completely independent of its owner. Prospective buyers look for a self-sustaining operational machine, not a company where the founder is the chief bottleneck. When structuring your Accountability Chart for an exit, the owner must transition out of any seat that has daily operational responsibilities. If your name is still in the Integrator seat, or if you are running sales or operations, you must build a plan to elevate others into those seats. Your goal is to have your name only in the Visionary seat, or off the operational chart entirely. Next, look at your weekly Scorecard. A buyer wants to see that your leadership team runs the business using five to fifteen key forward-looking metrics, rather than relying on your personal intuition. The Scorecard must prove that the company has a predictable cadence of tracking, identifying, and solving issues without your intervention. By implementing this operational discipline today, you demonstrate to buyers that they are acquiring a turnkey system with a high-performing leadership team, which dramatically increases your enterprise value and ensures a clean transition.

Category: EOS Implementation

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