Make yourself redundant before you sell your business 

It often comes as a shock to business owners when they learn the day they legally complete the sale of their business is not the day they actually walk away. One of our experienced Business Growth Advisors, Geoff Gwynn, explains more.   

It’s very common to require the key shareholders to remain as employees for up to 24 months post sale.    

 

Why – it’s simply about risk! 

Having successfully completed due diligence, every buyer then focuses on getting a quick and solid return on their investment in your “old” business. 

The more integral you are to the day-to-day operation the more involvement the buyer is likely demand from you, and the longer you may need to stay on as an employee to transfer your skills, knowledge and valuable experience post sale. 

 

The solution – make yourself redundant! 

Take time to plan your exit date well ahead of when you want to hit the beach and create a simple management structure than can operate without you. Build it on solid business processes, using meaningful measures (KPI’s), with everyone adhering to the same basic values you have instilled in the business.  

 

The benefit to you 

From our experience we see that time and time again a functioning management structure makes the selling process easier, achieves a premium exit price, and an earlier trip to the beach for the shareholders. 

 

The earlier you start planning and preparing for how and when you will exit your business, the smoother the process will be.  

The herd can help with developing core values for your business, KPI setting and monitoring, as well as HR support to recruit or restructure your staff.  Get in touch to find out more.