Most owneres focus on their company readiness and neglect their personal readiness
It’s not uncommon for acquisitions to go south because a Seller realizes just days or weeks from a deal being completed that they aren’t prepared personally to let their company go. An exit planning professional will ensure your company is ready to command a premium but will also ensure you are ready as the owner/Seller to successfully move on to a new phase in your life. This readiness relates to your personal financial and mindset readiness. Here are great questions to think through that will have you preparing personally for a euphoric exit event:
- Am I clear on what Net amount I will want to receive from an acquirer – have I conducted a Gross Proceeds to Net Proceeds analysis?
- Do I have a tax efficiency plan for the proceeds of a future sale and is my estate plan updated?
- Where will my personal monthly cash flow come from once I no longer receive a paycheck?
- Where will me and my family get our health insurance from?
- What will my calendar look like once I no longer have my company?
- How will I introduce myself when meeting someone new and they ask what I do?
- What will keep me from getting bored once I go from the busy schedule of owning my company to not having any company meetings to attend?
- Will I need to be mentally challenged once I sell my company and if so, how will I address this?
- Do I have hobbies that I will want to invest my time, money and energies in?
- Is there an organization (i.e.: philanthropic) I will want to support with my time and money?
- How does my spouse/family or partner spend their time today while I’m working and will the change in my life impact their schedule or routine?
As you invest energy into ensuring your company is prepared to one day support a successful exit event, equally prepare yourself personally. Use time as a friend to ensure complete readiness professionally and personally to increase the likelihood of achieving your future euphoric exit event.
