Our controller is a fantastic core values fit and runs our daily accounting flawlessly, but we are starting preparation for an exit in eighteen months. She has zero experience with investment banking, complex tax structuring, or private equity due diligence. Do we need to replace her on the Accountability Chart, or is there a way to bridge this gap?

Question

Tyler Smith · Accepted Answer

This is a classic Right Person, Wrong Seat scenario for the future size of your business. Your controller is perfect for a ten million dollar run-rate operation, but an exit process requires a strategic Chief Financial Officer level of experience. You cannot expect a controller to suddenly GWC™ a complex transactional seat. To address this on your Accountability Chart, you must split the finance function into two distinct seats. Keep your controller in her current seat, with roles focused on accurate financial reporting, accounts payable, accounts receivable, and cash-flow management. She GWCs this role and keeps your daily operations running smoothly. Then, create a new CFO or strategic financial advisor seat above her, reporting directly to the Integrator. Since you are eighteen months from an exit, you may not need to hire a full-time, expensive CFO. Instead, you can place a fractional CFO or an investment advisory firm into that seat. The key is that the strategic seat must exist on your chart, and one person, even if fractional, must be accountable for the transaction metrics. This clean structure shows potential buyers that your financial reporting is disciplined and that you have the sophisticated oversight necessary to execute a clean transaction.