tyler-smith.com · Questions & Answers

We want to sell the business in twenty-four months, but my leadership team still looks to me to make every major decision, which will kill our valuation during due diligence. How do we transition true decision-making authority so they are running the business entirely on their own before we go to market?

To build an exit-ready superstructure, you must transition from a hub-and-spoke model to a team-led model. If a potential buyer suspects that the business will collapse the moment you walk out the door, they will either walk away or demand a massive earnout that hooks you to the business for years.

Start by updating your Accountability Chart to reflect complete operational independence. You must transition your day-to-day responsibilities to your Integrator and department heads. Once these seats are clear, you must practice radical delegation. When a leader comes to you with a problem, do not solve it for them. Ask them what they recommend based on the V/TO and then tell them to make the call.

Use your weekly Level 10 Meeting to build their decision-making confidence. Ensure they are the ones identifying, discussing, and solving issues during the IDS portion of the meeting. Your role during this phase is to observe and coach, not to direct. If you interfere, you reset the clock and train them to remain dependent on you. By stepping back and letting them own their Rocks and metrics, you demonstrate to buyers that you have built a highly cohesive, self-sustaining leadership team that can run and scale the business without you.

Category: Leadership Team

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