Many departing financial practice owners daydream of the ‘good life’, funded by the millions made from the sale of their business, but it’s rarely as simple as that.
Most buyers will insist that you remain within the company through their initial months at the head of the company to ensure a smooth transition between owners. This could be as an employee or as the head of a freelance advisory agency. You’ll need to negotiate this, as well as the length of this advisory role. It’s normal for this to last a year or even longer.
Most likely, you’ll be eager to thrive in this role before you stroll off into the sunset. After all, you’ll probably want your past employees and clients to continue enjoying working with the company after you’ve left. Plus, the value of your sale may well be partly determined by the level of client churn after your departure.
With this in mind, here are some tips for doing a fantastic job in your advisory role after you sell your company.
Negotiate the terms in your favor
Decide the terms under which you’re prepared to remain at the company after your sale, and stick to your guns during negotiations. Don’t settle for an advisory role that’s unsuitable or too long, just so you can offload the company as quickly as possible.
If you remain at the company under terms that make you unhappy, this is going to reflect in your performance as an advisor. As such, the company could suffer to maintain its success under the new owner.
Swallow your ego
Many business owners struggle taking orders from other people. Often, their ego is too big for them to stand this, especially when it comes to the running of the company they built from the ground up. If you are to remain in an advisory role, either as an employee or a freelancer, you’ll need to get used to this. Swallow your ego and accept that someone else is in charge now.
Find a successor you like
This is helps the most important tip for thriving in your advisor role, or in any role when you work under someone else.
Many HR studies have shown that we work harder for bosses we get along with and believe in.
This is just one reason to take your time when choosing a successor, and not just pick the person who comes up with the highest bid. For a smooth transition between owners and a healthy ongoing relationship between buyer and seller, it’s important you both have similar visions for the future of the practice. If there’s conflict between owner and advisor regarding a company’s future direction, this is a recipe for disaster.
Succession Link can assist with the process of finding a suitable successor for your financial practice. By joining our online database, you’ll be able to speak to hundreds of experienced professionals who are looking to expand their business ownership. Click the link to learn more about how Succession Link allows you to easily connect with these professionals and strike a deal.