We are negotiating a Transition Services Agreement as part of our exit, but we are worried the buyer will drag out our operational involvement indefinitely. How do we structure this post-sale transition window using our Accountability Chart to protect our time and sanity?

Question

Tyler Smith · Accepted Answer

Buyers often want the founder to stick around through a Transition Services Agreement to ensure operational stability, but this can easily turn into an open-ended trap. To avoid getting stuck in operational quicksand after the sale, you must define the scope of your agreement using your Accountability Chart. Treat the transition agreement as a temporary contract with highly specific boundaries rather than a vague commitment to help out. Before going to market, ensure your daily responsibilities are completely offloaded to other seats on the Accountability Chart. Your post-sale role should be limited to a defined advisory capacity, such as answering historical system questions or introducing key client relationships. Specify the exact number of hours per week you will provide, and ensure the agreement has a hard expiration date, typically ninety days to six months. Structure the agreement so that any hours requested beyond the limit are billed at a punishingly high hourly rate. This financial penalty forces the buyer to respect your boundaries and encourages them to train their own people quickly. It allows you to exit clean, protect your personal freedom, and prevent post-sale burnout.