Despite some common misconceptions, business owners do not always leave their company immediately after the sale closes. In fact, more often than not, the buyer will keep the owner on for a set period of time, especially if the buyer is a strategic buyer. They will want to learn the trade secrets directly from you. Stepping out immediately after a close is actually rather rare in M&A. Buyers recognize the integral value of business owners and want to utilize their expertise.
Oftentimes inserting the business owner to the deal can drive up the price. Buyers recognize that the owner has caused the business successful. If you as the business owner have created strong customer and vendor relationships, your reputation is priceless. If the strategic buyer does not desire to keep you on, sometimes the parent company acquire you as an employee.
If you are looking to stay on with your company after closing, consider striking up an employment agreement that will allow you to hold a consultant position within your old company. This deal works especially well for those looking to retire but who do not necessarily want to stop working completely.
It is important, however, to remember that if you do decide to stay with the company, the new owners are going to make changes. You must be prepared to leave behind the notion that you can still call all of the shots. However, if you are prepared to be flexible, then staying on with the company post-closing will prove to be a rewarding experience.
If you're looking to sell your business, contact the professionals at George & Company, today. We have been successfully selling businesses and completing valuations in the Worcester area for almost 40 years.
