We are preparing for an exit, but my leadership team is divided on whether we should sell to private equity or a strategic buyer, and this disagreement is bleeding into our daily operational priorities. How do we resolve this strategic divide on the leadership team?

Question

Tyler Smith · Accepted Answer

A divided leadership team cannot successfully execute an exit plan. If some of your leaders are building the business for a strategic buyer while others are optimizing for private equity, you are pulling the company in two different directions. This strategic misalignment will show up in your operational metrics and ultimately hurt your valuation.

You must resolve this disagreement by bringing the issue to your V/TO. Schedule a dedicated session with your leadership team to align on your long-term exit strategy. Step by Step Exit teaches that exit readiness is about building a business that can run independently, which appeals to all buyers, but you still need a unified target.

Use the IDS process to debate the pros and cons of each buyer type. A strategic buyer usually wants integration, proprietary technology, and market share, which means you should focus heavily on IP and system standardization. A private equity buyer focuses on strong EBITDA, predictable recurring revenue, and a management team that stays in place.

Listen to your team's concerns. Often, their preference is driven by personal fear about their future roles post-acquisition. Address these fears openly. Once everyone has been heard, you, as the Visionary, must make the final decision on the target buyer profile.

Once the decision is made, everyone on the leadership team must align and support it. Update your V/TO to reflect this shared vision and establish Rocks that directly support this specific exit path.