We expect a buyer will require us to stay on for one to two years post-sale to assist with the transition. How do we structure our post-closing operational roles on our exit runway to protect our sanity while satisfying the buyer's need for continuity?

Question

Tyler Smith · Accepted Answer

Most buyers will require you to stay on after the sale to ensure a smooth transition, but being an employee in a company you used to own can be a miserable experience if not managed properly. To protect your sanity and secure your payouts, you must plan your post sale role long before you sign a letter of intent.

The key is to make yourself operationally obsolete before the sale even begins. Use your EOS® Accountability Chart to delegate all of your day to day operational responsibilities to your leadership team. If you are in the Visionary seat, clearly define what that role looks like post sale, which is usually limited to strategic advisory, high level client relationships, or product development assistance.

When negotiating the transaction, push for a transition period that is as short as possible, ideally three to six months of active transition followed by a consulting arrangement rather than a full employment contract. Ensure your consulting agreement has clear boundaries, defined hours, and specific deliverables. If a portion of your purchase price is tied to an earn out, make sure you retain the necessary authority to influence those metrics during your transition period. By structuring a clear, limited advisory role on your exit runway, you satisfy the buyer's need for continuity while ensuring you can exit on your own terms.