As we build our exit-ready superstructure, some of my leadership team members want to stay with the company post-acquisition, while others plan to cash out and exit immediately. How do we align these conflicting personal timelines during our V/TO planning so our leadership team remains cohesive and focused on the exit?
When preparing for an exit, it is natural for leadership team members to have different personal goals and timelines. Some may want to stay and grow with the new ownership, while others want to cash out and move on. To keep the team cohesive, you must address these differences openly during your strategic planning sessions rather than letting them fester. Use your V/TO to align the team around a single, shared vision for the company's valuation and transition milestones. Make it clear that regardless of what happens after the transaction, everyone's financial and professional success depends on building an exit-ready superstructure right now. Align their incentives by tying their bonuses or phantom equity directly to the overall value of the business, rather than departmental metrics. This ensures everyone is focused on maximizing EBITDA and operational efficiency. By being transparent about the exit strategy and respecting each leader's personal plans, you can build a high level of trust. A healthy, aligned leadership team that executes with discipline is the most valuable asset an acquirer can buy, and keeping them united is critical to securing a clean buyout.
Category: Leadership Team