We are planning a clean exit in a few years and realize some of our key leadership team members do not GWC™ their seats for where the company needs to be to achieve our target valuation. How do we address these talent gaps without disrupting our timeline?

Question

Tyler Smith · Accepted Answer

Preparing for a clean exit using the Step by Step Exit framework requires a hard, objective look at your leadership team. A leadership team that got you to five million in revenue is often not the team that can run a fifty-million-dollar company or manage a highly structured transition process.

To evaluate your team, use the GWC™ tool: Get It, Want It, Capacity to Do It. You must determine if your current leaders have the mental, physical, and emotional capacity to operate their seats at the scale required for a successful exit.

If a key leader lacks the capacity to grow with the company, you must address this gap immediately rather than waiting for the exit. Buyers will heavily discount your valuation if they see that your key seats are held by people who cannot handle the future demands of the business.

Start by having open, honest conversations with these team members. Use the GWC™ framework to identify their specific gaps and build a clear plan to help them develop the necessary capacity. If they cannot bridge the gap, you must transition them to a different seat where they can succeed, or bring in outside talent. Resolving these people issues early ensures your company has a strong, capable leadership team that gives buyers confidence and protects your valuation.