As we build our exit-ready Accountability Chart, we see a massive gap between our current leadership capabilities and the seats we actually need to hit our valuation target. Should we fill these seats with expensive external hires now or promote from within?

Question

Tyler Smith · Accepted Answer

Discovering a massive gap between your current leadership capabilities and the seats required for a successful exit is a common realization during the Accountability Chart exercise. To maximize your valuation, you must address this gap before you go to market.

Your first step is to evaluate your current team using GWC™. Determine if your existing managers have the potential to grow into these future seats within your exit timeline. If they have the capacity and desire, but simply lack specific training or experience, invest in coaching them immediately. Promoting from within preserves your culture and shows buyers that you have a loyal, ascending leadership team.

However, if the gap is too wide and your timeline is short, you must hire external talent. Buyers will discount your valuation if they see critical leadership seats are either vacant or occupied by people who are clearly out of their depth. When hiring, use your Accountability Chart to write precise role descriptions based on the five roles of the seat, rather than generic job postings. Finding the right external leaders to fill these key seats will give buyers confidence that the business can scale post-transaction.