UQuotenquote The emotional roller coaster
of selling a business BY DENISE BARNES
As a business owner once told me: ‘Even before your name goes up above the door, have your exit planned.’ Wise words.
Maybe you only started your business recently, and the thought of selling hasn’t crossed your mind. Yet starting and selling have more things in common than you might imagine. They both involve making a life-changing decision that affects the whole family, they both require the right people to give you professional advice, and they both take up a huge amount of time, much of it stressful and emotional, but selling is the more demanding, because you still have to run the business, keep your lips sealed, pick the right buyer and steer the transaction through to completion.
From the first paragraph there are four words which are the most important of all. Yes, pick the right buyer. Everything hinges on this, but it’s all too easy to get it wrong, and that mistake will be the mother of all emotional roller coasters.
But you can enjoy the roller coaster ride without your emotions shaking the life out of you, if you:
Plan, plan, plan. Plan ahead before you even instruct the business agent. Have your five years of accounts ready for inspection, check staff contracts are signed and the staff manual updated, and have all the premises thoroughly cleaned and repainted after any outstanding repairs have been carried out. Research books on how to sell your business so you’re aware of the pitfalls.
Don’t even think of selling if you already have an emotional problem on your hands. If you’re going through a divorce, bereavement, moving house, or someone close is seriously ill, put the sale on hold, otherwise your stress level will go through the roof. Once the crisis is over, even if you have to wait several months, you’ll feel calmer and be more in control, and ready to deal with a new set of challenges. Delegate as much as possible leading up to the sale and during the process without compromising company performance and staff competences. This will free up more of your time to concentrate on the most serious transaction you will ever be likely to make.
54 | The Entrepreneur | JULY 2014
Pay extra to instruct the best business agent, solicitor, accountant and tax adviser that you can afford. This is not the time to shop around for the cheapest. The professionals who know their stuff can save you money in the long run, and in turn this will save you untold stress, knowing your precious business is safe in their hands.
Pick the right buyer for your business. This is not necessarily the one who makes the highest offer. It may be one who has more related experience to the business you’re selling. Or simply the one you feel most comfortable with. This is not as trite as it sounds. In fact, honesty is the most important quality your buyer can bring to the table. You must trust and like him or her and feel you can a) do business with them, and b) your staff will also like them and remain loyal to the company. If you pick the wrong buyer, whatever else you do right will have little bearing on the misery and harm they can cause you and the business. If you have any doubts at all during the transaction, or just feel uncomfortable, walk away. Your gut instinct is at work. Act on it.
Telling the staff. This can be tricky. You need to pick the right moment. It’s really too late once you’ve exchanged contracts as it looks as though you don’t trust your staff enough to put them in the picture. Likewise, you shouldn’t discuss your plans
to exit until close to exchange otherwise you’ll find them panicking and surfing online for alternative jobs. They will be shocked and you will feel guilty as though you’ve let them down. Try to stick to the facts without allowing your emotions to take over and reassure them that the new buyer has their interests at heart.
Read the Terms and Conditions document three times. Make sure you’ve understood everything and not missed out anything. Solicitors are not infallible.
You’ve put your blood, guts, heart and soul into your business; you’re handing over your baby, but you’ve got to keep those emotions firmly in control. Well, maybe you’re allowed a glimmer of excitement. After all, your life is set for a positive change, but wait until after you exchange contracts before opening the bubbly. Then, once the emotional roller coaster ride is over, just make sure you shut the fairground gates! Good luck!
Seller Beware – How Not To Sell Your Business by Denise Barnes is published by Biteback Publishing. Start Your Business readers readers can get a copy for a discounted rate of £8.99 by visiting:
www.politicos.co.uk/promotions and entering the code START.
You can follow Denise on twitter @denisebarnesuk or visit
denisebarneswriter.com
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