“Are you mentally prepared to sell your business?”
I ask this important question because, with nearly every client we work with, the psychology of selling is in many ways the most important part of our deal making skill set.
Because if you take the first steps to sell your business and are not preparing for your eventual exit in your mind, you may waste 9-12 months and expose yourself to loads of potential buyers (some of whom may be competitors), rumors (which could arise), and clients who may get wind of your plans (never a good thing).
We are not saying that at the outset of your exit journey you need to be mentally prepared to sell your business. For many clients, the journey may start with our evaluation, then move onto our roadmap for enhancing value, allowing them to build a much more “buyer ready” business over the next several years. Then, down the road, when the company is ready, you too may be ready.
Most interestingly, nearly every client we have interviewed over the years post deal close have told us the same thing: "At the outset of working with Generational Equity, all I cared about was getting the most money at close (and all in cash)!"
However, over time other concerns begin to bubble to the surface, and often the deal that is closed maybe for a lower valuation, but provides the seller greater peace of mind.
Because part of mentally preparing to sell is recognizing the importance of the legacy the owner has built in the business over the decades. Finding a buyer to preserve and grow that legacy impacts the mental preparation for selling.
Another component to consider when mentally preparing to sell is this: What will I do with the rest of my life? Our clients often tell us that they really don’t start thinking about that until close to closing.
One common theme is that the relief of letting go of the business frees the mind for the first time to contemplate a brand new future! Listen to what a few of our clients talk about their post close new day:
So we go back to the question: Are you mentally prepared to sell your business? And again, I want to reiterate that this decision is a journey.
Today you may not even be considering the sale of your company. You are too young, having too much fun, or making too much money to do it now. However, the reality is you will one day need to do so. Better to start the journey now with the counsel and guidance of an experienced M&A advisory firm like Generational Equity than being forced a few years down the road to exit due to unforeseen circumstances.
A great place to start to learn about being mentally prepared to sell is at a Generational Equity exit planning conference. These complimentary meetings require no obligation from you other than a few hours of your time. But those hours will prove to be your best investment in years, for you will leave the meeting with lots of things to consider and ponder, as well as a new roadmap for success.
To learn more about our meetings please use the following links:
One thing to consider as you contemplate if you are mentally ready to sell your business is this: We are in the midst of one of the strongest seller’s markets in decades. Maybe you should prod yourself forward and become mentally prepared to sell!
Carl Doerksen is the Director of Corporate Development at Generational Equity.
© 2020 Generational Equity, LLC All Rights Reserved
Thanks again Phil and feel free to have a future client call me if they would like a referral. You are a true professional!Andy Graham, Vice President, Modern Heating & Plumbing
Tom Staszak is one of the most professional people I have dealt with in my last forty years of business. You’ve got a great group of people and you have built a truly professional organization.Michael J Polarek, President, Paragon Packaging
We are very happy with the end result, and are very happy to be able to move forward with all of our future growth plans.Rick Nowak, President/CEO, Kurz Electric Solutions, Inc.
Bruce and I wanted to take this opportunity to thank Generational Equity for assigning Musa Jagne to our transaction. In Bruce’s words, “Musa did one hell of a job for us!”Karen S. Williams, CFO, BW Manufacturing
Michael worked tirelessly, He followed every lead meticulously and urgently to make sure nothing was missed.Robert Evans, President and CEO of Mealtracker Dietary Software
I wanted to write you a quick letter to express our appreciation and our delight on the outcome of helping us through the process of our recent sale. We are very happy with the end result, and are very happy to be able to move forward with all of our future growth plans.Terry D. Wickman, President, Keytroller
We were happy to see the interest in our company and what we cherished has not just a valuable company but an important company to the communities we served in.Larry Moore, Owner, A Company Portable Restrooms
I couldn’t have asked for a better team than Michael and Deborah. We couldn’t have done it without them.Robert Evans, President and CEO of Mealtracker Dietary Software
The help you provided us during each step of this process made us feel very comfortable and confident we were selecting the right approach to transition our Company.Andy Graham, Vice President, Modern Heating & Plumbing
Generational Equity’s assistance was invaluable in compiling and marketing our business.Bil MacLeslie, CEO, ipHouse
Generational Equity educated and informed us – so that we could be on the upside of a good decision (to sell).Bil MacLeslie, CEO, ipHouse
Greetings Mike. Thank you for the captivating and compelling presentation you made at the Phoenix presentation last week. Over many years in business yours was the most informative and well-presented presentation, on any subject, that I have ever attended! Your energy and enthusiasm combined with your concise and captivating support of your positions with easily understood examples and data was compelling.Pete L.
Thank you again for all your guidance and support. Any company will achieve what they intend, if they have you on their team!Rick Nowak, President/CEO, Kurz Electric Solutions, Inc.
Your wisdom and experience were invaluable to me during this once-in-a-lifetime transaction.Ralph Noblin, President of Noblin & Associates
I must say that I have never worked with a more driven, competent and focused individual as Don Ho.Jay Dinnison, Owner of Sharpe Mixers
We knew it would be a difficult task to have someone really understand our business and our market, prior to researching a possible buyer, so it was imperative that we found someone of your caliber, with definite proven experience in this area.Rick Nowak, President/CEO, Kurz Electric Solutions, Inc.
We are extremely pleased with the way Generational Equity handled the sale of our company. Your associates, Tom and Chris, did an outstanding job of getting us (me) through the process.Michael J Polarek, President, Paragon Packaging
We will highly recommend Generational Equity and Musa Jagne to any business owner about to embark on the same process.Karen S. Williams, CFO, BW Manufacturing
The process was much more involved than I expected and your help, experience and advice was a big factor in making the negotiations go as smoothly as possible.Terry D. Wickman, President, Keytroller
I quickly recognized that Don was working for Sharpe Mixers above all else, and held our interests above others.Jay Dinnison, Owner of Sharpe Mixers
I would like to thank you and your firm, Generational Equity, for being our valued advisors in our journey.Bil MacLeslie, CEO, ipHouse
We thank you Eric and Generational Equity making our dream come true.Larry Moore, Owner, A Company Portable Restrooms
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