tyler-smith.com · Questions & Answers

The buyer is discounting our enterprise value because they believe the business cannot run without my visionary leadership, yet they want me to sign a rigid three-year employment agreement. How do we use conative profiles like the Kolbe Index to restructure my post-close role and preserve our valuation?

Buyers often fear founder transition risk, which leads them to discount your valuation or insist on locking you into a long-term employment contract. But forcing a classic Visionary founder into a structured, corporate post-close management role is a recipe for disaster.

To preserve your valuation and avoid a miserable post-close experience, use conative testing, specifically the Kolbe Index, to redefine your transition role. Introduce the buyer to your Kolbe profile to show them how you are hardwired to solve problems.

If you are a high Quick Start, your natural instinct is to innovate, experiment, and challenge the status quo. Forcing you into a rigid corporate integration role will frustrate you and the buyer's management team.

Instead, use your conative profile to design a specialized, part-time strategic advisory role. Show the buyer that your Integrator is the one who actually runs the day-to-day operations and executes the business systems. Your Accountability Chart should clearly reflect this separation of powers.

By showing the buyer that your Integrator has the GWC™ to run the business and that your conative profile is best suited for high-level product strategy or key partner relations, you reduce their perceived transition risk. This protects your enterprise value and allows you to negotiate a shorter, more flexible advisory agreement instead of a painful three-year corporate sentence.

Category: Valuation & Deal Structure

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