tyler-smith.com · Questions & Answers

The buyer is demanding that our key managers sign long-term employment agreements as a condition of the sale, but we are worried our team will clash with their highly structured corporate environment. How do we use conative testing to evaluate if our leadership team has the GWC™ for this new corporate structure?

Requiring key managers to stay on post-close is a standard buyer tactic to ensure operational stability, but it often leads to cultural and operational friction. If your leadership team is accustomed to an entrepreneurial, fast-paced culture, forcing them into a rigid corporate structure can lead to rapid burnout and executive departures, which can trigger post-close contract disputes.

To evaluate this risk objectively, utilize conative testing, such as Kolbe indexes or the Aptive Index, before finalizing the transaction terms. Unlike personality tests, conative assessments measure an individual's hardwired, instinctual drive and natural approach to problem-solving.

For example, if your current leadership team consists of high Quick Starts who thrive on innovation and rapid change, they will struggle in a corporate environment that demands high Follow Thru, where every decision requires multiple layers of approval and strict adherence to historical precedents.

Use these conative profiles to assess if your managers truly have the GWC™ (Get it, Want it, Capacity to do it) for their proposed post-close roles. If the testing reveals a severe conative mismatch with the buyer's operating style, use this data to negotiate shorter transition periods or more autonomous operating structures. Protecting your team's mental fingerprints is not just about employee satisfaction: it is about ensuring the business hits its post-close targets and secures your remaining payout.

Category: Valuation & Deal Structure

← All questions