Ten Hard-Earned Lessons About Selling a Business —New York Times

“You’re The Boss” Author Josh Patrick Suggests Business Owners Use Credentialed Advisers Who Work Only for You, Employing Intermediaries, Developing a Personal Financial Plan, More. 

Josh Patrick is a founder and principal at Stage 2 Planning Partners, where he works with private business owners on creating personal and business value.  Recently he offered some recommendations about selling a business at the New York Times “You’re the Boss” blog.   Here are five of the “hard-earned” lessons he passes on. 

1. Hire an experienced team of advisers. You have spent years building your business, and you usually get only one shot at selling it. Having a team of advisers — an accountant, a business intermediary or broker, an attorney, a financial adviser and a business generalist — who have been down this road many times is crucial.

2. Use an intermediary to sell your business. Going through the sale of your business can be very difficult. You need an experienced intermediary or broker who will speak with the other party and represent you and only you in the sales process. Sellers who represent themselves almost always make mistakes that cost them time and money. This is not a time to cut corners in professional fees.

3. Make sure your advisers work only for you. As we saw with Ms. Hunter, her business broker was representing both sides of the deal. When this happens, the broker usually ends up working for no one — and problems occur.

4. Accept that the person who buys your business will change it. Most buyers have their own ideas about how things should be done. If your sale involves an earnout or seller financing, you want to make sure the seller’s actions won’t limit your ability to get paid any deferred money that is owed you.

5. Make sure you tie your most important employees to the business. Have them sign employee agreements that can be transferred to the new owner. The new owners may want you to stick around for a transition period, but they will want your main people to stay longer. Making sure they stay and don’t disrupt the company while it’s in transition is crucial to a successful sale.

 Read his full piece here to learn more, and see other “You’re the Boss” posts.   

The New York Times‘ “You’re the Boss” blog is dedicated to “The Art of Running a Small Business.” 

Selling a Business Can Go Wrong in Lots of Ways.  Here’s How to Make Sure it Happens Right. 

 

Questions? Comments? Critiques?
Interested in contributing on an alternate topic?
Write editor Dave Dix.