Lee McCabe Argues for Robust Digital Strategy in Exit Decks

In a recent LinkedIn post, Lee McCabe argues that the digital strategy sections in many company exit decks are critically underdeveloped, failing to present a true picture of a business’s operational capabilities and value drivers to potential buyers. McCabe, a proponent of thorough due diligence and value creation, highlights a common oversight where digital transformation is relegated to a superficial mention rather than being showcased as a core component of a company’s growth engine.

McCabe points out the disparity between the detailed sections dedicated to market analysis, management teams, and financials, and the often-brief treatment of digital aspects. He notes:

“Most of them spend 40 pages explaining the market, the management team, the financials, the margin bridge, the customer base and the usual “multiple levers for growth” section that somehow manages to say almost nothing. Then digital gets two pages at the back.”

This limited portrayal, according to McCabe, often consists of little more than a website screenshot, a generic Google Analytics chart, or a vague statement about “invested in technology.” He expresses particular skepticism about the common inclusion of AI, which he suggests often amounts to little more than using tools like ChatGPT for basic content generation, rather than integrating AI meaningfully into core operations.

The Need for a ‘Commercial Operating System’ View

Lee McCabe asserts that potential buyers need to see more than just surface-level mentions of technology. Instead, he advocates for detailed insights into the company’s entire digital ‘commercial operating system.’ This includes specific elements that demonstrate control and operational efficiency.

Key Components of a Strong Digital Strategy Section

McCabe outlines several critical areas that should be elaborated upon in an exit deck’s digital section:

• Tech stack and Data architecture
• Single customer record implementation
• Website performance metrics
• Attribution models
• Customer Acquisition Cost (CAC) payback periods
• Lifetime Value to Customer Acquisition Cost (LTV:CAC) ratios
• Channel mix effectiveness
• Business Intelligence (BI) dashboards
• Governance frameworks
• In-house digital capabilities
• Automation of workflows
• Meaningful AI use cases built on solid infrastructure

He stresses that these elements provide concrete evidence of a business’s operational strength and its ability to manage and scale effectively. As Lee McCabe puts it:

“The point is to prove the business has control. It knows where customers come from, what they cost, what they are worth, which channels scale, where margin is created, which workflows are automated, and which growth levers the next owner can pull on day one.”

This detailed evidence, McCabe argues, allows buyers to underwrite future growth with greater confidence. He contrasts this with superficial claims such as “we have Salesforce,” “we are data-driven,” or “we are exploring AI,” which lack substantive proof.

Reframing Digital from Support Function to Value Creation

A central theme in McCabe’s analysis is the reclassification of digital strategy from a mere support function to a primary driver of value. He observes that most exit decks still present digital in a subordinate role.

“Most CIMs still present digital like a support function. It isn’t.”

According to Lee McCabe, in a well-run business, digital strategy is an integral part of the value creation case. In exceptional businesses, it becomes a key reason why a buyer can invest with a higher degree of certainty regarding future expansion and profitability. This requires proactive effort well before the exit process begins, a point McCabe acknowledges can be inconvenient but is ultimately essential for maximizing valuation and ensuring a smoother transaction.