I've summarized this article capturing its key points. To read the entire article, click on the link at the bottom of the summary - Eric Gall.
Erick Hamdan , June 26, 2017
Takeaway: Selling a business is often the biggest decision in an entrepreneur's life, and it isn't easy. That's why emotional preparation is key.
- The emotional aspect of selling your business can be far more difficult than anticipated.
- No longer being the go-to person can be a hit to your ego.
- Preparing yourself to let go.
- Here are emotional hurdles business owners face when they sell:
Losing Control
- Post-sale, the seller's role becomes shareholder and senior manager.
- Focus is transitioning day-to-day operations to a new management team while maintaining a familiar face for customers and employees.
- The seller has cashed out and reduced their responsibility -- they no longer have control.
- The seller and the business are no longer one and the same.
- Family, friends and the community will view the seller differently.
- Seller's are not often prepared for these change.
Dealing with Employees
- The buyer may want to realize synergies or cost savings that impact employees.
- In smaller, private companies some roles may be filled by family members.
- Changes may include changing accountants, lawyers, insurance brokers and other providers.
- Sometimes these are personal relationships as well.
- It’s important to anticipate changes and discuss them with employees and other partners before the sale happens.
The Day of the Transaction
- Seller's stress levels tend to go up, not down, after they sell.
- The seller will realize they no longer own what they worked their whole life for.
- They now have partners or shareholders to be accountable to.
- Those who stay in the business post-sale often work harder to not let their partners down.
- This is great for the buyer, but can be counter-productive for the seller and even emotionally debilitating.
- Setting and adhering to your expectations post sale can relieve stress.
Preparing to Sell Your Business
- Prepare!
- Involve advisors including lawyers, accountants, business brokers, etc.
- Find someone who has gone through the process and talk to them.
- Having an experienced person to call for support is invaluable until you come to terms with the process.
For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall, CBI, CM&AP at Eric@EdisonAvenue.com or 239.738.6227. Also, visit our Edison Avenue website at www.EdisonAvenue.com. To search for Florida Businesses for Sale: CLICK HERE
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