We have signed an intent to sell our business, and a significant portion of our payout is tied to an earn-out based on client retention over the next twelve months. What weekly scorecard metrics should we track to protect our payout during this transition?

Question

Tyler Smith · Accepted Answer

During a post-acquisition transition, customer relationships are highly vulnerable to disruption, which can jeopardize your earn-out. To protect your payout, you must transition your scorecard to focus heavily on client stability and engagement metrics. Do not rely on monthly retention reports, as those are lagging indicators that only register after a client has already left. Instead, track weekly leading indicators of client health, such as client onboarding milestone completion rates, active product or service usage trends, and support ticket response times. You should also track client touchpoints, ensuring that every key account receives personal communication from their transition manager within specific weekly intervals. Additionally, monitor the weekly net promoter score or client satisfaction ratings for any projects delivered during the transition. By monitoring these leading indicators, your leadership team can identify friction points early and step in to resolve them before a client decides to terminate their contract. This data-driven approach keeps your team focused on delivering high-quality service during a period of organizational change, ensuring you hit your retention targets and secure your full earn-out payout.