We may sell next year. Should our next EOS Rocks focus on growth or making the business easier to buy?

Question

Tyler Smith · Accepted Answer

Choose Rocks that improve the business and make its value easier to substantiate. Do not treat growth and exit readiness as competing programs, and do not fill the quarter with sale preparation at the expense of normal execution.

Running EOS with an exit lens means considering buyer appeal alongside internal operating performance. A growth initiative deserves scrutiny if it adds complexity, requires substantial investment, or will produce little evidence before a potential sale.

Evaluate proposed Rocks against four questions:

- Does this address a material constraint on current performance or future transferability?
- Can the team complete a meaningful outcome within the quarter?
- Will the result be measurable and useful even if the sale does not happen?
- What execution risk, spending, or management distraction does it introduce?

For example, entering a new market may offer upside but leave a buyer evaluating an unfinished expansion. Improving delivery capacity in an established market may produce more observable benefits. Neither is automatically the better choice. The decision depends on economics, timing, and the company's existing commitments.

Keep longer initiatives in the broader plan and define a realistic quarterly milestone. Assign each Rock one accountable owner and a clear completion standard. Avoid vague priorities such as "maximize exit value."

The recommendation is to protect the core business first, then select a manageable set of priorities that improve both operating strength and transferability. Do not defer necessary investment merely to make near-term earnings look better. Buyers may recognize the resulting backlog of spending and execution risk.