Our bookkeeper has been with us since the beginning and now holds the Head of Finance seat on our leadership team, but she has no idea how to prepare our financials for a private equity exit. How do I honor her loyalty to the company without letting her lack of strategic capability ruin our valuation?

Question

Tyler Smith · Accepted Answer

This is one of the hardest challenges business owners face, but you must separate personal loyalty from the objective needs of your Accountability Chart. To prepare your company for a successful exit, you need a strategic financial partner, not just a historical reporter.

Apply the Right Person, Right Seat filter. Your long-term bookkeeper is likely a Right Person who lives your Core Values, but she is in the Wrong Seat because she lacks the capability to GWC the Head of Finance role at this level of complexity.

You can honor her years of loyal service without keeping her in a seat she cannot handle. Have an honest, loving conversation. Explain that the business has outgrown the current structure and that you are bringing in a strategic executive to lead the exit planning.

Redefine her role on the Accountability Chart. Move her to a seat where she can succeed, such as accounting manager or controller, reporting to the new leader. This allows her to continue contributing in a meaningful way while freeing up the leadership seat for the high-level expertise your business needs to maximize its enterprise value.