tyler-smith.com · Questions & Answers

We are in the exclusivity period and key employees are sensing a transaction, creating a massive flight risk that could derail the deal before closing. How do we use the GWC tool and transparent communications to keep our leadership team aligned and focused on their Rocks during due diligence?

The period between signing a Letter of Intent (LOI) and closing a deal is highly vulnerable. Key employees often sense the shift in your energy and start worrying about their job security, which can lead to distractions or unexpected departures that can kill your transaction. To mitigate this risk, you must maintain absolute operational consistency and address their anxiety head-on using structured communication.

Do not hide behind vague answers. Sit down with your key leadership team members and run a thorough GWC evaluation. This involves ensuring they truly Get, Want, and have the Capacity to handle their roles during this high-stress transition phase. Be transparent about preparing the business for its next phase of growth, and explain exactly how a successful transition will create massive professional opportunities and career advancement for them in a larger organization. For other GWC-related discussions, see [identifying if a VP of Finance has GWC capacity for an exit](/qa/gwc-vp-finance-exit-capacity-issue) or [assessing an internal candidate for an Integrator seat](/qa/promoting-internal-operations-manager-integrator).

Keep your team focused by binding them to clear, short-term Rocks that are directly tied to keeping the business running smoothly during due diligence. When your leaders have specific, measurable goals to hit every ninety days, they have less time to worry about rumors. Maintain your weekly Level 10 Meeting rhythm to track their progress and address any operational issues immediately. You can find strategies for [reviewing your scorecard in under five minutes](/qa/how-to-review-scorecard-under-five-minutes) or [handling defensiveness around red scorecard metrics](/qa/handling-defensiveness-around-red-scorecard-metrics). By keeping your team engaged in their daily execution and showing them a clear, exciting path for their own future, you maintain operational stability and eliminate the flight risk that could derail your close.

Related questions

• [What are the hidden risks in my business operations that will cause a buyer to walk away or renegotiate the price during due diligence?](/qa/identifying-operational-risks-before-buyer-due-diligence)
• [How do we assess if an internal candidate is ready for the Integrator seat?](/qa/promoting-internal-operations-manager-integrator)
• [How do we review our weekly scorecard in under five minutes?](/qa/how-to-review-scorecard-under-five-minutes)
• [How do we structure the deal to prevent them from choking our lead generation during the earnout period?](/qa/structuring-earnout-protection-sales-integration)

Category: Valuation & Deal Structure

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