Transitioning after Selling your Business
Our team at Lakes Business Group has helped hundreds of business owners through the process of selling their business. It’s a big change for most of the business owners we work with, many have been contemplating it for a while and have future plans and others have just decided it’s time to move on.
Regardless of the reason, when a business owner decides to exit the business, the process can be an emotional time. Part of the transition is communicating with your employees and the emotions and stress that they may feel during the transition period. Also, you and the new owner assessing how to tell the customers, suppliers and any other key people associated with the business.
From feelings of relief and excitement to disturbed, anger and concern about the future of the business as well as your future without the business as part of your life. It is okay to take the time to mourn this loss. You now have the time to slow down and consider the next step.
The article in Inc.com tells of an owner who sold her company to pursue a dream of living abroad which gave her new perspectives.
“When I sold my company to Caliber Corporate Advisors, I spent two months pursuing my dream of raising my children overseas by living in Nicaragua and Costa Rica,” says Joy Schoffler, Founder of a FinTech focused PR firm, Leverage PR. “It was really amazing getting the time to read, paddle board, and just be.”
“Now that I am home and back in the swing of things, I am looking at everything in a new light. In addition to continuing to serve as a senior advisor at Leverage PR and on AARP’s and SXSW’s Accelerator advisory boards, I have gotten a chance to serve as an advisor to companies I’ve had a passion for over the years: Wealth Migrate and The Experience Firm. Having the time and energy to dedicate to companies I believe in is a really cool part of this phase,” adds Schoffler.
Need for an Exit Strategy
Of course there is always a percentage of business owners who regret their decision after it is sold. If you are contemplating and exit strategy in the next 5 or so years, begin your plan now rather than waiting. Planning now reduces the risk of regretting the sale. If you need help in a future exit plan, reach out to our team of business advisors who can help with information that can help.
Reputable Recycling Center Business Sold
Congratulations to Michael Szmanda for assisting in the sale of a highly reputable recycling center located in Northern Illinois. Michael has been working with the seller since last March to find the find the right buyer and close the deal.
The seller was looking to retire and has kept the business well organized with a strong team in place.
Congratulations to the new buyer of this profitable turn-key business and to the seller as he looks to enjoy his retirement!
Acquisition of Manufacturing Company
This plastic molder manufacturer has been in business for over 40 years producing an array of products for businesses and consumers. with contracts in place for the larger accounts and a great customer distribution, this business was very well diversified and stable. There is plenty of additional room for growth in each of the two divisions. Growing by adding new customers or products or by way of marketing and selling directly to end users.
Included in the sale of the business was over nine acres of land with facilities totaling over 74,000 square feet.
Congratulations to the new owner and to all involved in the sale!
Northern Illinois Wholesale Food Distributor Successful Transaction
An Illinois food distributor has been successfully transferred to a new owner. The seller was ready to retire after operating the business for several years. The new owner has an incredible brand that is known for customer service and reliability.
This company has a niche in providing a wide variety of ingredients throughout the bakery industry.
This wholesale food distributor was on the market for 5 months and had over 90 inquiries. So congratulations to our sales rep, Joe Braier and to the new owner. Also, best of luck to the seller in his retirement!
Successful Transfer of Business
Congratulations to Andy Schmelzer for assisting with a successful business transaction of a community based residential facility (CBRF). We also want to congratulate the new owner of this profitable, well run CBRF/Assisted Living operation in southeastern Wisconsin. And, finally to wish the sellers best of luck in their retirement!
This business opportunity was sold within six months of being signed with our office. In those six months, there have been over 50 inquiries. This business sale included the property.
Successful Business Transaction of Greenhouse in Wisconsin
The confidential business offering #1025 was successfully transferred to a new owner last week! This greenhouse business has been serving the area for over 25 years and the seller was ready to retire. There were over eighty interested buyers looking at the business profile for this opportunity.
The Lakes Business Group sales rep was able to find the right buyer for this business and close the deal last week. Congratulations to all the parties involved!
Successful Business Transaction
The successful acquisition of a residential septic service company was completed last week. This business has been serving the local community and provides services in the septic pumping, cleaning and repair industry. The original owner had started this business and has been operating it for over 25 years and he was ready to retire.
The acquisition took place last week with Dan Williamson as the intermediary from the Lakes Business Group team. Best wishes to the seller as he starts his retirement. And congratulations to the new owner of this Wisconsin Septic Service business!
Successful Business Transaction – Custom Cabinet Showroom
In January the successful business transaction of a custom cabinet shop in Wisconsin. The seller decided to sell now because the market was right. He knew he could get the value of the business in today’s market. This business sold within six months of the listing date.
This business has both residential and commercial customers and is well known and respected in the community. Seller was willing to negotiate a non-compete with the new owner and to assist in a smooth transition.
Congratulations to the new owner and our team for getting this deal closed.
SOLD! Fabricator and Manufacturer of Stone Products
In December this long established fabricator of all type of natural stones and manufacturer of veneer stone products was successfully transferred to a new owner. This business was on the market for nine months and had over fifty interested buyers.
Some of the highlights of this business:
- a very experienced and skilled professional staff of key employees
- the seller only worked 10 hours per week
- in a good location and building is owned by the business
- many long-time commercial and residential customers
Congratulations to the seller and new owner of this long established business!
If you are looking to sell your business, NOW is the time. As you read from this transaction, there are many buyers looking to own an established business.
Your Successful Business Transaction – Telling your Employees
Selling your business is a confidential process. Have you considered during the process the future of your employees and their reaction of the business having a new owner? Disclosing information as you start your exit strategy can do harm during the process and jeopardize a successful transaction. So how and when do you tell your employees? Forbes.com had a good article giving some tips on preparing your employees for the sale of your business.
- Wait until the deal is completed.
It is best to wait until the papers are signed and the deal is final before telling the employees. Telling them too soon could decrease the value of of your business. Losing a employee can be detrimental to the value of your business and the sale of your business.
- Tell your closest associates first.
Before disclosing information to all your employees, you want to make sure your closest and highest ranked associates know your exit plan. These employees will be developing close relationships with the new owner if they decide to stay.
- Plan accordingly in telling your employees.
Each employee will react differently to the news so it is important to be as compassionate as possible when telling them you will be leaving and a new owner is taking your place. Employees need to know their jobs are secure once a new owner takes over. Make sure to introduce the new owner to your employees after you break the news.
The way you’ve handled your business is unique and unlike any other will do so it is important to find a buyer that is the right fit for the business you’ve built.
To read the full article ‘How to Tell Your Employees You’ve Sold the Business‘