We have dozens of critical vendor agreements and software licenses that are currently registered under my personal name or require my personal guarantee. How do we systematically audit and transition these operational agreements during our exit runway so they do not hold up the sale?

Question

Tyler Smith · Accepted Answer

Personal guarantees and agreements registered under your personal name are significant red flags for prospective buyers. They represent key-person risks that can stall due diligence or result in painful holdbacks at the closing table. You must systematically untangle these personal ties during your exit runway. Begin by auditing every single vendor agreement, software subscription, lease, and utility account. Create a master list of all agreements that bear your personal signature, guarantee, or personal credit card. Next, systematically transition these agreements to the corporate entity. Contact vendors and request the removal of personal guarantees, using your clean corporate credit history as leverage. If a vendor refuses, seek alternative suppliers who will contract directly with the business. Assign ownership of these vendor relationships to the correct seats on your Accountability Chart. Your Integrator or finance leader should be the primary contact, not you. By the time you enter due diligence, your personal name should not appear on a single operating contract. This proves to the buyer that the business operations are entirely self-contained and that the transition of ownership will not trigger contract defaults or require renegotiations.