We have selected an internal successor to take over the company, but they have never run a business during a recession or tight credit market. How do we pressure-test their leadership capabilities under real stress before we commit to an internal sale?

Question

Tyler Smith · Accepted Answer

You cannot wait until after you sell the business to find out if your successor freezes under pressure, especially if you are carrying a seller note. You must systematically stress-test their decision-making on your exit runway. Start by moving yourself out of the Integrator seat on your Accountability Chart and into a pure advisory role. Let your successor run the weekly Level 10 Meeting and own the quarterly Rocks. During quarterly planning sessions, simulate difficult operational scenarios. Have them lead the IDS process to solve complex problems without your input. Monitor how they handle cash flow tight spots, client disputes, or talent departures. If they make a mistake, use it as a coaching moment rather than stepping in to save them. This hands-off testing gives you the confidence to carry a seller note, and it gives external buyers the confidence that the management team is highly capable.