We are being asked to roll over fifteen percent of our equity into the buyer's platform company, but we are worried their corporate operating team will clash with our leadership team. How do we use conative testing and Kolbe profiles to evaluate this partnership risk?

Question

Tyler Smith · Accepted Answer

Rollover equity is only valuable if the post-close partnership is operationally aligned. To evaluate this risk, you must look beyond corporate resumes and assess the conative alignment of both leadership teams. Conative testing, specifically utilizing the Kolbe Index, measures an individual's hardwired striving instincts and natural approach to problem-solving. Request that the buyer's key operating partners take the Kolbe Index, and compare their profiles with your existing leadership team. If your leadership team is dominated by high Quick Start profiles who thrive on innovation and rapid change, and the buyer's operating team consists of high Follow Thru profiles who insist on rigid corporate procedures, you will face immediate friction. Use this data during your negotiations to define clear operational boundaries and governance rights in the shareholder agreement. Ensure that your leadership team retains the authority to run the business unit using your established EOS tools without bureaucratic interference. By using conative testing, you can objectively identify potential cultural and operational clashes before you commit to rolling over your hard-earned equity into a joint venture.