As we prepare the business for an eventual exit in three years, my leadership team is asking if they will be required to stay on with the buyer. How do I prepare them for the reality of a transition without making promises I cannot keep?

Question

Tyler Smith · Accepted Answer

When preparing for an exit, honesty is your best tool. Your leadership team will naturally feel anxious about their future under new ownership. Trying to hide the reality or making false promises about what a buyer will do will only destroy trust and cause your key leaders to start looking for new jobs. Start by explaining that buyers look for a strong, cohesive leadership team that can run the business smoothly. Their presence on the team is actually a key selling point that increases the value of the company. Explain that most buyers will want the leadership team to stay on for at least a transition period, and often much longer, to ensure operational continuity. However, be honest that you cannot guarantee what a buyer will do after the acquisition is complete. Instead of making empty promises, focus on what you can control. Align your team around their current Rocks and help them succeed in their seats. Consider setting up clear retention bonuses or phantom stock plans that reward them for staying through the transition. By being transparent about the exit process and showing your leaders how they benefit from a successful sale, you build a healthy, trusting environment. This ensures your team remains focused on running a clean, profitable operation right up to the day of the transition.