Our V/TO has a clear ten-year target, but we plan to sell the business in five years. How do we resolve this timeline conflict on our V/TO so our leadership team stays focused on long-term growth instead of short-term harvesting?

Question

Tyler Smith · Accepted Answer

Having a five-year exit timeline does not mean you should shorten the horizon of your strategic planning. In fact, a ten-year target on your V/TO is a powerful selling tool. Buyers are purchasing the future cash flows of your company, not just its historical performance. If you truncate your strategic vision to match your personal exit date, you signal to your leadership team and potential buyers that the business has reached its peak. Instead, keep your ambitious ten-year target on the V/TO intact. Use your exit runway to build the systems and team that will make that ten-year target highly achievable for the next owner. This shows a strategic buyer or private equity firm that they are acquiring an appreciating asset with a clear growth trajectory. In your leadership meetings, use the Step by Step Exit framework to align your short-term Rocks with this long-term vision. This approach keeps your leadership team motivated by a grand vision rather than feeling like they are merely polishing the business for a sale. Your exit preparation should make the business stronger and more efficient today, while handing the buyer a clear, documented map to double or triple the business over the next decade.