Warning: Your M&A Strategy Must Include This Critical Factor
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Closure is such a wonderful thing, especially for someone selling their business. If your printing business is up for sale, you should definitely think about your closing date. But your M&A strategy needs to extend beyond the close.
Far too often, business owners think that once they sell their business, they get to walk away from it and hit the beach. That’s a nice little fantasy, but last time I checked, there is no Mr. Rourke and Tattoo waiting for you.
The truth is, the only place you should be going after the sale of your printing business is back to work...at your company!
Huh? Didn’t you sell the biz to get out of the rat race?
Sure you did, but any good M&A Strategy includes a transition period in which you help the new owner get up and running. This is the critical factor that countless sellers overlook.
Dedicate yourself to your new owner’s goals
You’re not selling a lawn mower. You’re selling a business upon which the new owner, your employees and your former customers rely upon. No matter what the reason is for the sale, these are all parties you need to consider - and respect - to the utmost degree.
Why? Because these people all helped you reach your current goal, and they can help you aspire to new heights down the road.
Perhaps you’re moving on to consulting, or maybe taking some time off before you embark on another venture.
If you can prove that you’ve successfully built one business, and helped successfully transition it into new ownership, then your expertise, insight and experience will only be more valuable in your next endeavor.
Surviving the transition
So what do you need to do in order to survive the year after? Here are some tips:
- Adjust your mindset. You’re not the boss anymore, and you won’t be giving the orders. Realize that for the next year or so, you’ll be following someone else’s rules.
- Be patient. The new owners most likely will be part of a bigger corporate structure, and it will take a much longer time for them to make decisions. Just sit back and adjust to their pace.
- Be thankful. You sold your business, and the new owners are excited at the prospect. You owe these people a bit of gratitude, which is something you need to keep in mind when the going gets tough.
- Understand your role. During the negotiations, you should have spelled out precisely what your role will be in the new company. If you haven’t, try and establish those parameters as quickly as possible, so you can understand how you fit in.
Being part of the new team is a critical role for the seller. Make it a win-win situation that extends far beyond the closing date. It will only help you down the road.
(Photo by Stephan)
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