My business partner wants to optimize our leadership team and operations for a clean, high-valuation exit in three years, but I want to build a self-sustaining business that generates long-term distributions. This strategic divide is starting to confuse our leadership team. How do we align?
A leadership team cannot execute effectively when the owners are steering the bus in two different directions. This strategic divide creates confusion, causes team members to take sides, and stalls operational momentum. To resolve this, you and your partner must get on the Same Page.
You need to schedule a private, offsite meeting to hammer out your differences away from the leadership team. Use Our Charter as your framework. The three pillars of Trust, Same Page, and Yes to Strategy and Structure must guide your conversation. You must be completely open and honest about your personal goals, financial needs, and fears.
The good news is that these two paths are not as mutually exclusive as they seem. A business that is highly attractive to an outside buyer is, by definition, a self-sustaining business with strong cash flows, clean processes, and a leadership team that operates independently of the owners.
Work together to answer the eight questions in your V/TO. Agree on a shared 10-Year Target and a 3-Year Picture that satisfies both of your ambitions. For example, you can build a highly valuable, systematized company over the next three years. At that point, you will have the optionality to either sell for a premium valuation or step back into the Owner's Box and enjoy high distributions. Once you have a unified vision, present a single, strong voice to your leadership team.
Category: Leadership Team