We are preparing for an exit, but my leadership team is divided because some executives want to stay with the buying entity while others want to take their payout and run. How do we align these conflicting personal motivations behind a single, unified exit strategy?

Question

Tyler Smith · Accepted Answer

It is normal for a leadership team to have conflicting personal goals as you approach an exit. Some executives are looking for a lucrative payout so they can retire, while others see the acquisition as an opportunity to accelerate their careers within a larger corporate structure.

To align these motivations, you must bring transparency to your V/TO® and exit strategy.

First, address the elephant in the room. Have a candid, one-on-one conversation with each leader to understand their personal professional goals. Do not judge or penalize them for wanting to leave or stay. You need accurate data to build a successful transaction.

Second, design incentive structures that align with both paths. For those who want to transition out, tie their exit bonuses to systemic documentation and training their successors. For those who want to stay, structure retention bonuses and phantom stock plans that vest after the transaction, ensuring they remain committed to driving performance during and after the sale.

Third, use your V/TO® to show how the exit benefits both groups. A clean, high-multiple transaction creates capital for the company and career advancement opportunities for the leaders who remain. By acknowledging their individual motivations and aligning them with the transaction outcome, you build a unified team that buyers will value.