Our leadership team is incredible at running daily operations, but how do we objectively determine if they GWC™ the actual seat of business owner before we commit to an internal transition instead of an external sale?

Question

Tyler Smith · Accepted Answer

The operational skills required to run a company are entirely different from the financial and strategic risks of owning it. When evaluating an internal transition versus a third-party sale, you cannot simply assume a great Integrator or department head wants to be an owner. You must evaluate them for the Owner seat using GWC™ (Get it, Want it, Capacity to do it). Getting it means they understand the capital risk, debt obligations, and fiduciary duties of ownership, not just how to hit their weekly Scorecard numbers. Wanting it must be genuine interest in equity risk, not just a desire for a loftier title or a sense of obligation to you. Capacity means they have the financial capability to secure financing or the long-term risk tolerance to handle personal guarantees and cash flow fluctuations. If they lack any of these three, forcing them into ownership will destroy the company. In that scenario, your best move is an external sale to a buyer who can bring their own capital and strategic direction, while retaining your leadership team in their current operational seats where they already thrive.