Selling a Business to Buy a Better Tomorrow
I’ve been thinking about what selling a business means for the owner. For most, it means moving into a new and exciting chapter of their lives. Getting off the daily treadmill, a sudden influx of money, and the freedom to change how they spend their time and prioritise their lives. The business will no longer be the top priority. While it may still hold importance for someone who stays on after the sale, it will never again be an all-consuming passion or problem.
Prepare yourself for sale, not just your business
When advising a business owner who wants to sell, my first recommendation is: “Prepare yourself for sale, not just your business.” My second would be: “Prepare your loved ones as well.”
Selling your business should be about more than just escaping the day-to-day difficulties, it should lead to a better tomorrow. Your motivation for sale is important, go into it purely trying to escape from current problems will only create anxiety, ensure you fail to get the best price, and leave you feeling empty after the transaction.
Therefore, it’s crucial to think about what your personal ‘better tomorrow’ looks like. How do you envision your future? One client of mine dreamed of a year-long yacht trip around the world. However, this vision impacted his family just as much as running the business did. Pursuing that dream required conversations with his loved ones to ensure everyone was on board. Otherwise, he risked a lonely journey, if not during the trip, then at its end.
Prepare for an emotional journey, or just another transaction
The decision to sell can bring lots of conflicting emotions, while some can see it as just another business transaction, most describe it as a roller coaster – some even going as far to compare it to selling a child…
To some it can feel like failure or giving up, and some shudder at the thought of “retiring”. But these are predominantly about mindset – is it the right move for you, for your family and for the business? You’re unlikely to take all the emotion out of the process, but being prepared for the ups and downs of the journey is important to a successful outcome.
Selling your company won’t make you a different person, but it will almost certainly change you
The effects are as varied as people themselves. Some will feel a great sense of relief, while others may feel at a loss. Some will worry about the future of the business under new ownership, while others will quickly move on from that phase of their life. We all respond according to our established character traits in such situations. Selling your company won’t transform you into someone else, but it will undoubtedly bring change.
Consider your legacy and long-term goals: different deal structures offer different flexibility options and opportunities for sellers
It’s important to think about what you want from the deal beyond financial reward as this will have a major influence on the type of acquirer and deal structures you pursue. Some sellers may want to continue working within a larger organisation or may prefer a gradual exit. Some may be concerned about the future of the business and staff. Others may want a quicker exit. Different structures offer a way to adapt to a new future and ensure it is truly a better tomorrow for you and your loved ones.
Seek professional advice
Selling your business is a significant event and one you want to get right first time. So, it’s essential to seek advice from experienced professionals, such as Entrepreneurs Hub, to navigate the complexities effectively. We can help to maximize your chances of finding the right buyer who can meet your needs and provide your business with the future it deserves.
If you would like to discuss your plans and explore the potential value of your business with no obligation, please feel free to contact us.
