We are planning a clean exit in three years, but now that the leadership team knows we are preparing the business for sale, they have become highly anxious and are focusing on updating their resumes instead of executing our V/TO. How do I realign them around the exit strategy?

Question

Tyler Smith · Accepted Answer

When a leadership team learns about a potential business sale, their natural instinct is to protect their personal security, which often leads to distraction and falling performance. To realign them, you must address their fears head-on with radical transparency and clear incentives. Start by holding a dedicated meeting to discuss the exit strategy. Explain the why behind the sale and paint a clear picture of what the future looks like for the company and for them. Show them how the exit aligns with the long-term vision in your V/TO. To keep them focused on execution, you must align their personal incentives with the success of the transition. Create a stay-bonus pool or an equity or phantom stock plan that rewards them for hitting key Rocks and maintaining operational stability through the sale. When they have a direct financial stake in a successful exit, their focus will shift from updating their resumes to maximizing the value of the business. Emphasize that the best way to secure their future with a new buyer is to show a highly disciplined, self-running leadership team that consistently hits its targets. By turning their anxiety into opportunity, you keep your team aligned and focused on execution.