Starting a successful business requires focus and follow-through. You also need to have a plan in place for what happens when you are ready to sell the business. Securing an offer will only be the first step in the process of leaving the company.
The transition to a new owner will frequently produce complications. Should your exit strategy include transition support to help the new owners handle such challenges?
Your guidance can make all the difference
Even professionals with years of experience running a business may struggle to take over a successful company in the same industry. From the process of developing relationships with employees and vendors to acclimating to the business schedule, there will be a lot of challenges for the new owner of your business.
When you have already invested so much time and effort in the creation of your company, you likely want to see it succeed under new ownership. Agreeing to stay on in an advisory or consulting capacity for a few months or possibly a year after the new owner assumes control could be a way for an entrepreneur to make their business more attractive to would-be buyers while also protecting the company itself.
Transition support often tapers off over time
You may agree to a month or two of full-time support as you train someone to take over your position, followed by part-time involvement and then simply consulting availability. Properly addressing how much support you intend to provide the new owner in your purchase agreement and in your exit strategy will help clarify what the new owner can expect and your obligations after the sale. Having the right plans in place can help those planning a major business transaction.