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The buyer wants me to sign a twelve month Transition Services Agreement as the outgoing CEO, but I want to step away quickly. How do we structure the TSA around our operating system so I can hand over operations and exit in ninety days?

A lengthy Transition Services Agreement is often a buyer's safety blanket because they are afraid the business will collapse without the founder. To secure a fast, clean exit, you must prove that the leadership team already runs the day to day operations without you. Start by presenting your Accountability Chart, showing that every seat has a clear leader who GWCs their role. Demonstrate that your Integrator is fully capable of running the business and that you have transitioned all major responsibilities. Next, propose a structured, ninety day TSA with clear operational milestones instead of a generic time based contract. Align these milestones with your quarterly Rocks. For example, specify that your role during the transition is strictly advisory and limited to specific, documented tasks, such as introducing the buyer to key relationships or handing over proprietary software keys. Use your weekly Level 10 Meeting structure to transition the leadership team's reporting lines to the new owners. By showing the buyer that your business has a highly systemized operating model, you give them the confidence that a prolonged transition is not only unnecessary but could actually disrupt the team's momentum. You can exit quickly when the business is already built to run without you.

Category: Valuation & Deal Structure

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