We are planning an exit in two years, and I know a buyer will discount our value if I am still making key decisions. How do we test our leadership team's independence and prove they can run the company without my constant intervention before we actually go to market?

Question

Tyler Smith · Accepted Answer

If you are planning to exit your business in the next few years, you cannot wait until the transition to find out if your leadership team can run the company without you. Potential buyers will perform deep operational due diligence, and if they discover that you are still the primary engine of decision-making, they will either slash your valuation or walk away entirely.

To build an exit-ready superstructure, you must systematically test your team's independence.

Begin by scheduling a series of test runs where you deliberately step out of the daily operations. Start small with a one-week complete disconnect. During this week, you must not answer emails, respond to phone calls, or check in on Slack. Your leadership team must run the weekly Level 10 Meeting™ and solve all operational issues on their own.

Once they succeed at one week, stretch it to two weeks, and eventually to a full month.

When you return from these test runs, do not immediately step back into the driver's seat. Instead, audit how they performed. Review the Scorecard, check the progress on their Rocks, and look at how they handled any emergencies. If things broke down, do not get angry; instead, use those breakdowns as issues to IDS® in your next leadership session. This reveals exactly where your Accountability Chart or your processes need to be strengthened. Proving your leadership team can sustain high performance during your prolonged absence is the ultimate evidence of an exit-ready business.