We run on EOS, but two key leaders could leave after a sale. How should we address that before approaching buyers?

Question

Tyler Smith · Accepted Answer

Treat leadership continuity as an exit-readiness priority, not something a buyer will solve after closing. A clear Accountability Chart shows who owns each function today. It does not establish whether those people want to remain through an ownership transition.

Start with ordinary career and succession conversations that do not require announcing a transaction. Understand each leader's ambitions, development needs and reasons for staying. Avoid promises about future ownership, compensation or authority that you cannot guarantee.

Use the EOS People component to distinguish three questions: Is the person right for the seat? Can the business maintain performance during their absence? What would make continued employment attractive to them? These require different responses.

Build a practical continuity plan:
- Identify responsibilities and relationships that would be difficult to replace.
- Develop internal coverage for critical seats.
- Give emerging leaders meaningful responsibility before a transaction begins.
- Review existing employment and incentive arrangements with qualified advisers.
- Consider retention arrangements when the transaction structure and disclosure timing are clearer.

Make the highest-priority continuity work a Rock with one accountable owner and a defined completion standard. Keep sensitive compensation and transaction discussions within an appropriate confidential group.

The exit lens adds a question to good EOS people management: will this leadership capability remain with the business after ownership changes? Demonstrated continuity can support buyer confidence, but no retention payment or employment agreement guarantees that someone will stay.