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SOUTHERN entrepreneurs


The sale of a business is life-changing so why do so few entrepreneurs prepare for the world beyond work?


Before the deal is done


After completion of the sale of a business, entrepreneurs can find themselves faced with the prospect of a completely different life – sometimes literally overnight. Alongside this ground-shaking change, regular payments from their business may have abruptly transformed (if the sale goes to plan) into a large, single pot of money


sale is an extension – or even the culmination – of their business life.


“They should be planning in advance of, and then in tandem with, any deal they are structuring for their exit, to ensure they don’t commit to anything legally binding which doesn’t reflect their ultimate goals."


Don’t go on working for the business


UBS Wealth Management conducted research earlier this year on typical post-exit experiences with leading entrepreneurs.


What became apparent from their interviews with high-profile business people is that this is an area where business people often get caught unawares and can discover that, for example, they are still putting their business first when, in fact, it's no longer their business.


Manage your team’s expectations


'Entrepreneurs can get nervous even thinking about life after exit ...'


If a firm’s founder experiences turmoil on exit, the same could be said for the team they’re leaving behind. Many employees have given no thought to the ultimate exit of their boss; some may be resentful.


When William Chase sold his Tyrrells crisp company, he fought for the best possible terms and conditions for staff under new owners Langhom Private Equity.


“It was a huge culture shock for the staff – many felt that I had deserted them and the company,” says Chase. “In a small business like that, there’s more team spirit and everybody sees themselves as working for the owner, not the company.”


If a firm’s founder experiences turmoil on exit, the same could be said for the team they’re leaving behind


Given that research shows only 7% of businesses offered for sale attract a buyer, it’s understandable that many owners devote attention to deriving best value at point of sale, or indeed achieving a sale at all.


But this single-minded focus means many owners fail to sit back and take a view of how their lives will look, financially and otherwise, after they exit.


Don’t bury your head in the sand


This surprising trend could be explained by a reluctance to succumb to hubris.


“Entrepreneurs can get nervous even thinking about life after exit – they don’t want to jinx it,” says Toby Johnson, a UBS wealth management adviser.


“Entrepreneurs tell us they don’t have the time to sit down and consider what they are going to do after exit. Yet, if only they made the time, many could save themselves a lot of money in tax bills, and certainly some considerable angst.


“These are people who would never bury their heads in the sand over a problem in their business. Yet the


www.businessmag.co.uk THE BUSINESS MAGAZINE – THAMES VALLEY – NOVEMBER 2015


The solution is good communication with employees over the reason for a sale, he adds. “When I sold Tyrrells, I was doing everything – production director, sales director, and more. You need people to understand this level of commitment is unsustainable, and that the business has to move on if it’s to grow.”


Arranging advice sessions on basic issues such as savings, trusts and wills can support colleagues in handling their windfalls – and help to earn goodwill and smooth relationships during the difficult exit process.


So don’t assume you’ll simply ride off into the sunset once you have signed on the dotted line. Forming a clear view of your life post-exit should be a major part of your long-term business planning.


Details: Toby Johnson 07425-017263 toby.johnson@ubs.com www.ubs.com/uk-wealthmanagement


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