tyler-smith.com · Questions & Answers

The private equity buyer wants me to sign a two-year consulting agreement post-sale to help transition client relationships, but I am worried we will clash over daily operations. How do I protect myself from this friction?

A post-sale consulting agreement can easily turn into a trap if you do not define your boundaries upfront. Once you sell, your role changes from owner to advisor, and you must adapt your conative style to this new reality. To prevent clashes, you must establish trust and clear expectations during the negotiation phase. Use the trust creation process of engaging, listening, framing, envisioning, and committing to align with the buyers operating partners. Clearly define your new seat on the Accountability Chart. You are no longer the Visionary or the Integrator. Your new seat must have very specific, narrow roles, such as high level client introductions or technical advisory, with zero authority over staff or operations. This gives you the necessary white space to step back and reflect without getting pulled into daily conflicts. Ensure the consulting agreement has a clear termination clause for both parties. If the buyer tries to pull you into operational decisions or if they change the culture in a way you dislike, you must be able to walk away without risking your earnout. Protect your peace of mind by treating this period as a clean, structured handoff.

Category: Exit Planning

← All questions