The buyer is demanding that I sign a twelve-month transition services agreement to support the business post-close, but I want to exit as quickly as possible. How do I structure my post-sale role so I am not trapped in daily operations while still satisfying the buyer's transition requirements?

Question

Tyler Smith · Accepted Answer

A transition services agreement is a standard requirement for buyers who want to ensure operational continuity after a sale. However, if your agreement is too broad, you can easily find yourself trapped in daily firefighting and operational problems. To protect your post-sale freedom, you must structure this agreement with clear boundaries.

Begin by defining the specific scope of your advisory role. Instead of agreeing to a general consulting arrangement, list the exact tasks you will perform, such as transitioning key client relationships or advising on strategic initiatives. Limit your time commitment by setting a maximum number of hours per week and establishing a clear end date.

Use your exit runway to train your successor and document your core processes, proving to the buyer that you are not needed for daily operations. Transition your day-to-day responsibilities to your leadership team before the transaction closes. By demonstrating that your company runs on a self-sustaining system, you can negotiate a shorter, high-level transition agreement that satisfies the buyer while allowing you to exit quickly.