tyler-smith.com · Questions & Answers

My business partner and I have very different ideas about when and how to exit the company. How do we resolve this misalignment without tearing the business apart?

Partner misalignment is a major threat to both your operations and your eventual exit valuation. To resolve this, you must step out of the daily business and create dedicated white space for a series of honest, structured conversations. Start by revisiting your personal goals and timelines separately. Ask yourselves the core conative questions: What are my true intentions? What am I willing to commit to? Use the Trust Creation Process to share these answers with each other without judgment. It is common for one partner to have a high Quick Start drive and want to sell immediately to start something new, while another partner with a Follow Thru drive prefers steady, predictable growth. Once you understand each other's hardwired motivations, look at your V/TO®. You must find a way to align your personal exit timelines with the company's long-term targets. If one partner wants to exit in two years and the other wants to stay for ten, you can structure a buyout where the staying partner purchases the leaving partner's shares, or you can bring in a minority equity partner to recapitalize the business. Use the IDS® process to put all options on the table, identify the root issues, and agree on a path forward that preserves the value of the asset.

Category: Exit Planning

← All questions