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What Do I Do Once I Sell My Business?

By Generational Equity

selling your business

The simple answer to that question is this: whatever you want! Pull out your bucket list, re-prioritize it, and now that you are liquid, having monetized your biggest asset, go and enjoy life!

Unfortunately, as with most life changing situations, the answer to the question What do I do once I sell my business? is never that simple. But fundamentally the analysis you need to do about the direction you personally want to head post transaction is probably one of the most important processes you will ever go through. When we meet with clients at our exit planning symposiums, one of the first items we discuss is motivation – it is very important for us to determine where on the decision-making spectrum the business owner is.

For many, they are at the initial step in exit planning and are attending our seminar to begin learning about how and when to exit. For others, they are much further along, having made the decision to exit sooner rather than later.

However, under either scenario we highly recommend that business owners take stock of their desires and motivations post transaction, and create a plan for the next phase in their lives.

Two types of transactions are typical:

  • 100% sale where the current owner(s) exits at some point, usually 1-3 years after a transition to new owners.
  • A partial sale where an investor, usually an equity firm, acquires 51% (or more) of the company and creates a new entity, and existing owners are typically retained to help the new firm reach its growth targets.

Typically the second transaction described above is for younger owners who are interested in staying not only to participate as a minority owner in any future liquidity events but also to take part in the exciting growth that is now possible given deeper pockets. With either transaction format (and all the possible permutations under each), understanding what you want to do in the future with your life is vital.

Hobbies or Not?

Most business owners have been so busy operating their companies for the last several decades that they have neglected themselves, and many have no hobbies or outside interests, save their families, to keep them busy post acquisition. We often hear back from our clients once the deal has closed and they tell us that they are driving the spouse crazy because for the first time in 30 years, the ex-owner is around far too much!

You want to avoid that scenario.

So here are some ideas we have gleaned over the decades of working with business owners to help you begin the process of thinking about the next phase:

  • Take inventory of what you like to do – think about all the things you would like to have done over the years but couldn’t because the business occupied your time.
  • Have frank and honest discussions with your spouse and loved ones about what they believe you should do post sale – the vision they have for you could be enlightening.
  • Do not delay the start of the exit planning process if you are unsure what you want to do post sale.

This last point is probably the most important to consider. As you go through your exit process (which can take anywhere from 9-15 months), your motivation most likely will change. This is natural. Quite often our clients begin working with us with one set of expectations about their post sale lives only to have that completely change as they spend time working on their documentation, talking with buyers, and learning more about how the M&A process works.

Again, what you choose to do after we sell your company is completely up to you. We have some clients who after selling their businesses actually come to us years later looking for acquisition targets because they miss running the company.

The key first step that we recommend to every business owner is the attendance at a Generational Equity M&A seminar. If you are unsure of your motivation, or if you are sure and simply want to learn the steps involved in selling all or part of your business, the meeting will help you crystallize your plans.

The good news is that these are complimentary and require no obligation on your part whatsoever. All you have to do is invest a few hours of your time and gain a wealth of knowledge that you can use to begin thinking about the key question: What do I want to do after I sell my company?

Carl Doerksen is the Director of Corporate Development at Generational Equity.

© 2015 Generational Equity, LLC. All Rights Reserved.

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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
Generational Equity educated and informed us – so that we could be on the upside of a good decision (to sell).
Bil MacLeslie, CEO, ipHouse
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.
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
Your wisdom and experience were invaluable to me during this once-in-a-lifetime transaction.
Ralph Noblin, President of Noblin & Associates
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
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
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
We thank you Eric and Generational Equity making our dream come true.
Larry Moore, Owner, A Company Portable Restrooms
Generational Equity’s assistance was invaluable in compiling and marketing our business.
Bil MacLeslie, CEO, ipHouse
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
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.
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
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.
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 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
I would like to thank you and your firm, Generational Equity, for being our valued advisors in our journey.
Bil MacLeslie, CEO, ipHouse
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