How do we align our leadership team on our target exit valuation during our long-term planning when some partners want to cash out now and others want to build a legacy?

Question

Tyler Smith · Accepted Answer

Misalignment on your long-term exit goals is a critical issue that must be addressed openly in our session room. We use the Step by Step Exit framework to bring these divergent perspectives to the surface. During our long-term strategic planning, we look at the legacy discipline to clarify what each partner actually wants, including post-exit life, financial objectives, and non-financial priorities. We do not ignore the elephant in the room. If one partner wants an immediate sale and another wants to pass the business to the next generation, we must IDS® this discrepancy.

We look at your current business valuation versus your target valuation to measure the value gaps. My job is to facilitate this hard conversation so you can agree on a unified strategy that serves the business first. We will document the agreed-upon exit readiness goals in your V/TO® so that every partner is working toward the same objective. If the partners cannot reach an agreement, it will stall your execution and destroy your enterprise value. We will resolve this friction in the room so you can present a united front to your leadership team.