My business partner and I have different timelines for when we want to exit, which is causing tension in our quarterly planning sessions. How do we resolve this misalignment so it does not destroy our company valuation?

Question

Tyler Smith · Accepted Answer

Misalignment between partners is a major red flag that prospective buyers will spot immediately during due diligence. If you and your partner are not aligned on your long term goals, it will bleed into your Level 10 Meetings™ and disrupt your entire leadership team. You must address this conative and strategic friction head on. Schedule a dedicated session outside of your normal quarterly meetings to focus exclusively on this issue. Use the V/TO® to find your common ground. If your partner wants to stay for five more years but you want to exit now, explore options like a partner buyout or recapitalization where one partner exits and the other stays with a new financial sponsor. Do not try to hide this tension from buyers. They will look at your meeting minutes, your decision making history, and your operational workflows. If they sense partner discord, they will either walk away or demand a significant discount to account for the risk of litigation or operational paralysis. Resolve the dispute and document the path forward in a binding agreement before you hire an investment banker or broker.