tyler-smith.com · Questions & Answers

One of our minority partners is unhappy with the proposed allocation of the purchase price and is threatening to block the transaction. How do we resolve this internal dispute without blowing up the deal with the buyer?

Internal partner disputes are a leading cause of deal death during due diligence. If a buyer senses friction or misalignment on your leadership team, they will lose trust, extend timelines, or walk away entirely.

To resolve this dispute and save your transaction, you must address the issue internally and systematically before it leaks to the buyer.

First, schedule dedicated Thinking Time to separate the emotional predicament from the financial problem. Partner disputes are often driven by fear of the future, loss of control, or perceived unfairness. Understand the core motivation of the dissenting partner before entering a negotiation.

Second, run a special leadership session to IDS®, meaning Identify, Discuss, and Solve, the issue. Use your V/TO to realign every partner on the ultimate exit goals. Focus on the core values and the long-term vision to remove personal animosity from the discussion.

Third, apply the Trust Equation by increasing intimacy and reducing self-orientation. Sit down one-on-one with the dissenting partner. Listen to their concerns without being defensive, and work to find a creative compromise, such as a localized earnout adjustment or secondary transaction structure, that meets their needs.

By handling internal friction with the same operational discipline you use to run your business, you can preserve partner relationships and present a unified, highly professional front to the buyer.

Category: Valuation & Deal Structure

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