My co-founder wants to pursue a rapid exit to a private equity firm in twenty-four months, while I prefer a ten-year internal handoff to our executive team. How do we use the IDS® process to resolve this fundamental alignment deadlock without disrupting our daily operations?

Question

Tyler Smith · Accepted Answer

A partnership deadlock regarding your exit strategy is a critical issue that will stall your company if left unaddressed. To resolve this, you must bring the conflict to your weekly leadership team meeting and run it through the IDS® process, which stands for Identify, Discuss, and Solve. This is not a casual conversation but a structured discipline to find the best path forward.

Start in the Identify phase by digging to the root of the disagreement. Ask your co-founder about their personal goals, financial needs, and tolerance for post-transaction involvement. Often, a desire for a rapid private equity sale is driven by a need for liquidity or a fear of market volatility, while a preference for an internal handoff stems from a desire to protect the company culture.

Move to the Discuss phase. Here, you must maintain an other-focused mindset, as outlined in the Trusted Advisor Fieldbook. Listen actively to your partner's perspective without immediately building your counter-argument. Frame the discussion around the long-term health of the business and your shared V/TO®.

In the Solve phase, look for creative compromises. For example, you could structure a partial recapitalization with a private equity partner that provides immediate liquidity for your co-founder while allowing you to remain in your seat and mentor the internal successor team over a five-year period. Once you agree on a path, document the decision in your V/TO® and communicate a unified front to your leadership team to prevent organizational drift.