We want to exit our business in five years, but we are unsure if our current leadership team has the capability to get us to our target valuation. How do we objectively audit their potential to scale?

Question

Tyler Smith · Accepted Answer

Preparing for an exit requires an entirely different level of leadership capability. To determine if your current team can get you to your target valuation, you must conduct an objective GWC audit of every leader on your Accountability Chart.

Start by looking at your five-year exit goal on your V/TO. Now, project your Accountability Chart out to what the organization must look like in three years to reach that goal. This future chart will likely require more sophisticated roles, stricter financial controls, and more robust systems.

Evaluate your current team against this future chart. Ask yourself three hard questions for each leader. Do they truly understand the complexities of a scaled business? Do they genuinely want the pressure of leading through a professional transition? Do they have the capacity to manage institutional diligence and rigorous reporting?

If a leader fails the capacity test for the future seat, you have a gap. You must decide whether you have the time to train and coach them up, or if you need to recruit external talent. Making this determination early gives you the runway to make systematic, orderly leadership upgrades rather than rushing to replace key players under the pressure of due diligence.