As we prepare for a clean exit, some of my leadership team members want to pool resources to buy me out, while others want a sale to a third party. This divide is creating political factions on the team. How do we resolve this strategic split?

Question

Tyler Smith · Accepted Answer

As the business owner, the ultimate destination of the company is your decision. However, a fractured leadership team will destroy your business value and derail any transaction, whether it is an internal buyout or an external sale. You must resolve this strategic split immediately to present a unified front to potential buyers.

Start by clarifying your goals on the V/TO®. You must be crystal clear about your exit timeline, your target valuation, and the type of buyer you are seeking. This is not a democracy, but you must share your vision openly so your team knows exactly where you are heading.

Next, use the IDS® process during your next leadership meeting to address the conflict. Allow every team member to voice their concerns and perspectives. Some leaders may fear losing their jobs in an external sale, while others may be excited about the potential growth.

Once the issues are on the table, make a firm decision. If you choose an external sale, explain why this path maximizes value and secures the company's future. Align your leadership team around this shared goal, and structure stay-bonuses or equity-incentives to ensure they are financially motivated to support the transaction.