tyler-smith.com · Questions & Answers

The buyer is requiring me to stay on for two years post-sale as a general manager, but my natural instincts are as a high Quick Start and I know I will clash with their corporate bureaucracy. How do we structure my transition role to leverage my actual strengths without risking my payout?

Staying on in a structured corporate role when your natural instincts are entrepreneurial is a recipe for disaster. If your Kolbe index shows you are a high Quick Start, your natural inclination is to innovate, experiment, and challenge the status quo. Forcing yourself into a general manager seat, which requires a heavy Follow Thru and adherence to corporate procedures, will lead to frustration and conflict with the new owners, potentially jeopardizing your earnout or transition payments. To avoid this, negotiate a transition role that aligns with your natural strengths rather than daily operations. Use your EOS Accountability Chart to show the buyer that your value lies in the visionary seat, not the Integrator or manager roles. Propose a structured consulting agreement where your responsibilities are limited to strategic business development, high-level client relationships, or technology innovation. Ensure that this agreement has a clearly defined scope of work and a fixed schedule, such as ten hours per week, rather than a full-time management requirement. Additionally, ensure the purchase agreement specifies that your transition payments are not contingent on subjective performance reviews by the buyer's corporate management. By structuring your post-sale involvement around your natural talents, you protect your mental sanity, preserve your payout, and give the buyer the strategic support they actually need.

Category: Valuation & Deal Structure

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