Our leadership team is highly capable, but our multiple is being dragged down because I serve as both the Visionary and the Integrator. How do we structure the split of these roles on the Accountability Chart to immediately increase our multiple before we go to market?
A buyer looks at a dual-role owner as a single point of failure. If you are operating as both the Visionary and the Integrator, the business is completely dependent on your daily decisions. To move your multiple into the top quartile, you must prove the company has a self-sustaining leadership structure.
Start by defining the two distinct roles on your Accountability Chart. The Visionary is responsible for big ideas, culture, and key relationships. The Integrator is responsible for executing the business plan, managing daily operations, and driving accountability.
To execute this split before you go to market, you must elevate a capable leader to the Integrator role. Look inside your current leadership team first. Identify who has the GWC™, which means they Get it, Want it, and have the Capacity to do the job. If you must hire externally, do it at least six months before launching your sale process.
Once the new Integrator is in place, you must step back completely from daily management. Let them run the weekly Level 10 Meeting™ and own the execution of your quarterly Rocks. This transition proves to buyers that the operating system runs without you. When a buyer sees a fully functioning Integrator leading the team, they will view your company as an acquisition platform rather than a risky owner-dependent business, which directly expands your valuation multiple.
Category: Valuation & Deal Structure