We are preparing for a potential exit in two years, but my leadership team is not aligned on our long-term goals in the V/TO. Some want to maximize short-term cash while others want to reinvest. How do we get on the same page?

Question

Tyler Smith · Accepted Answer

If your leadership team is split on your long-term exit goals, your business is pulling in opposite directions. This misalignment will kill your company's value during due diligence. Buyers want to see a unified, disciplined team that is executing a single, clear strategy.

To resolve this, you must run a dedicated session to align on your V/TO, specifically focusing on your 3-Year Picture and 10-Year Target. As the owner, you must be clear about your intent to exit. Keeping your exit plans a secret from your leadership team only breeds suspicion and anxiety.

Openly discuss the exit strategy. Address the fears of those who want to maximize short-term cash versus those who want to reinvest. Show them how optimizing the business for a clean exit actually serves both goals by maximizing the enterprise value, which ultimately benefits everyone if you have an incentive alignment plan in place.

Use the IDS process to debate the different paths. Once you make a decision, everyone on the leadership team must commit to the plan. There is no room for passive resistance or running private agendas.

Document the agreed-upon goals clearly in your V/TO. This alignment ensures that every single Rock you set and every operational decision you make over the next twenty-four months is directly building a highly valuable asset that is ready for a premium exit.