As we prepare our business for an exit, we realized that several of our early-stage employees have VP titles on their business cards, but on our Accountability Chart, they are actually running mid-level manager seats. Our M&A advisor warns us that sophisticated buyers will see through these inflated titles and question our management depth. How do we restructure these seats and align their titles without causing a mass exodus of key staff?

Question

Tyler Smith · Accepted Answer

Inflated titles are a common liability when preparing for an exit. Buyers look at the actual roles and accountability, not the titles on business cards. If a buyer sees a VP of Marketing who has no direct reports and only manages social media posting, it signals a lack of organizational maturity. To fix this, you must have transparent, direct conversations with these employees. Explain that as you prepare the company for its next phase of growth and a clean exit, you must align your internal Accountability Chart with standard industry benchmarks. Show them the actual seats on the chart. Explain that a true VP seat requires strategic planning, budget accountability, and leading a team of direct reports. If they do not currently GWC those strategic roles, they belong in a Manager or Specialist seat. Frame this as a structural necessity for the business's valuation, not a personal demotion. You can often soften the blow by structuring a retention bonus tied to the exit, or by creating a clear career path that shows what skills and results they need to build the capacity to earn that VP seat in the future. The worst thing you can do is leave inflated titles in place, as it creates confusion and erodes buyer trust during due diligence.