Step 6: Transition Post-Sale
Selling your business is bittersweet. It's a new chapter, one filled with mixed emotions. You'll need to effectively navigate changes in involvement, communicate with stakeholders, and resolve conflicts for a smooth transition.
How to Announce the Sale of Your Business
Announcing deals often unintentionally stokes rumors based on limited information. Be proactive in addressing:
Employees
Explain expected impacts on roles, responsibilities, and futures post-close. Provide retention offers to valued talent.
Customers
Emphasize continuity in product or service quality levels.
Suppliers/Partners
Provide visibility into dependencies like inventory orders and roadmap transparency.
Carefully consider timing, formats, and frequency for transparency without allowing distraction.
Post-Sale Involvement: Your Role After Selling
Post-close roles for owners range from complete departure to ongoing leadership, depending on deal structures negotiated earlier. New governance can mean adjusting autonomy expectations for sellers used to unilateral control.
Common post-close involvement structures include:
Consulting Role
Project or hourly work providing strategic advice
Employment Role
Salaried position, often with growth incentives
Board Role
Governance seat with influence tied to equity stake
Legacy Role
Ceremonial affiliation maintaining brand continuity
What if you regret the sale?
Seller's remorse. You've heard about it because it's quite common. Even if you've done a deal you feel good about, you might find the transition difficult. For one, you'll have less (or likely zero) control over your business. You'll have a lot more money than you did before, but the routine of your life will likely feel totally different. This is normal.
If you do end up feeling this kind of remorse, revisit your original motivations. Remind yourself why you wanted to sell the business, and what your goals were. This is a good way to ground yourself in your motivations. Remember that the version of you that wanted to sell the business had very good reasons for doing so (assuming you were thoughtful about the process).
Conclusion: Sell your business smoothly with Rejigg
To recap, the key components for successfully selling a small business:
1
Step 1
Decide When and Why to Sell
Reflect deeply on motivations, priorities, and ideal timelines for transition. Draft ambitious yet realistic objectives rather than chasing elusive optimal market timing or feeling pressure from external forces.
2
Step 2
Prepare to Sell
Methodically prepare relevant historical documentation regarding operations, finances, and ownership. Normalize information to accurately reflect sustainable business performance. Get your house in order.
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Step 3
Find Buyers
Negotiating directly with buyers tends to be the best way to get the outcomes you want, without forking over a huge portion of your business to a broker. But auctions and targeted outreach can cause you to either end up with a buyer you don't like, or end up missing out on your dream buyer. That's why we built Rejigg: we connect you with thoughtful, pre-vetted buyers and let you do a deal on your terms.
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Step 4
Negotiate a Deal
Scrutinize deal structure aspects like payment timelines, earnouts, and liability exposures as much as headline valuation multiples. Protect against lopsided risks once currency changes hands. Balance legal protections against relationship-straining over-negotiation.
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Step 5
Conduct Due Diligence & Closing
Set reasonable expectations around due diligence duration and depth required to alleviate buyer skepticism and level of distraction based on business complexity. Develop structured rhythms and tone for managing inquiries.
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Step 6
Transition Post-Sale
Over-communicate with employees, customers, and vendors throughout ownership changes. Assume positive intent when inevitable conflicts arise post-close. Anchor against sentiments of seller's remorse by reconnecting to original motivations.
Through Rejigg's step-by-step philosophy and guidance, selling your small business on your own terms is achievable. Our flexible model lets you control the process, timing, and terms rather than relinquishing power to ill-suited advisors and platforms.
Specifically, Rejigg was built to give business owners control. We help business owners avoid the headaches of traditional brokers and marketplaces by connecting them directly with established, thoughtful buyers. We don't want them to have to deal with mandatory broker fees or a loss of autonomy.
Our buyer network ranges from owner-operators to search funds to strategic acquirers, matching owners at every range from "considering selling" to "actively pursuing a sale." By building relationships with owners first, Rejigg offers a natural starting point to explore strategic sales.
Frequently Asked Questions
How do I tell employees I sold the business?
Be proactive and transparent. Explain expected impacts on roles and futures. Provide retention offers to key talent. Communicate early to prevent rumors and give employees time to adjust.
What is seller's remorse?
Seller's remorse is the regret many owners feel after selling. Even with a good deal, losing control and changing your daily routine can be difficult. It's normal and usually fades as you adjust to your new chapter.
Can I stay involved after selling my business?
Yes, post-close involvement is common. Options include consulting roles (project-based advice), employment roles (salaried position), board seats (governance with equity stake), or legacy roles (ceremonial affiliation).
How do I handle the transition period?
Over-communicate with all stakeholders. Establish clear handoff processes. Assume positive intent when conflicts arise. Most transitions include a period where you help the new owner learn the business.
How long should I expect to stay on after selling?
Transition periods typically range from 30 days to 2 years depending on the deal structure and business complexity. Most common is 3-12 months. This is usually negotiated as part of the purchase agreement.
What should I tell customers when I sell my business?
Emphasize continuity in product/service quality. Introduce them to new leadership. Address any concerns directly. Time the announcement carefully, usually after closing but before they hear through other channels.
How do I deal with seller's remorse?
Revisit your original motivations for selling. Remember that the version of you who decided to sell had good reasons. Focus on your new chapter and the opportunities it brings. Consider working with a coach or therapist if feelings persist.
What happens to my employees after I sell?
This depends on the deal terms. Most buyers want to retain employees. Key employees often receive retention bonuses. The purchase agreement may include protections for employees. Discuss this during negotiations if it's important to you.
Ready to Get Started?
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