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What’s It Like to Sell Your Business?

What’s It Like to Sell Your Business?

By Brittany Fugate

When I started Cenetric more than 20 years ago, I wasn’t thinking about the day I’d sell it (or if I ever would). Even 10 years ago, it wasn’t really on my radar.

But last year, an opportunity came up that was a great fit, and I decided to take the leap. Being acquired by Corporate Technologies means that our clients get the best of both worlds — Kansas City-focused IT services with a boost from an expanded pool of engineers whose expertise spans across a massive range of technologies.

I talked about my experience at the Helzberg Entrepreneurial Mentoring Program’s (HEMP) recent panel, “Selling Your Business.” I was joined by several other HEMP members who have sold their businesses: 

Top tips about selling your business from our panelists

We covered topics ranging from when to start thinking about an exit (sooner than you think) to what happens after the deal is done. Highlights included:

  • Whether you’re initiating a sale or you’ve been approached by someone to purchase your company, work with top-notch attorneys and accountants by your side to make sure the deal is handled fairly.
  • Make sure you’re prepared for the due diligence that will take place during the transaction — many of us were surprised by the level of detail (going back years) that would be requested. Having your financial statements and records in order is a must, including your Quality of Earnings report.
  • Existing legal agreements are also an important area of focus in a transaction. One panelist mentioned wishing that their customer contracts had been structured to better accommodate an acquisition. The sentiment of wishing they had prepared the business in various ways years before the sale was a common thread among many panelists. 
  • Know your company’s worth — it’s OK to reject offers and negotiate hard for things that are important to you. (That goes back to having those experienced professionals on your team to help you value the company and hold your position.)
  • After the sale, many of the panelists were thrilled to close their deal but felt a personal loss as well. They’d invested years of blood, sweat and tears into their company, and it was hard to part ways. According to the Exit Planning Institute, 75% of business owners regret the sale of their company one year later. That’s typically because many didn’t make a personal transition plan before the sale — 57% of Gen X owners and 44% of Millennial owners fell in that category.
  • To make sure you’re prepared on the financial side, panelists recommended working with a financial advisor who specializes in helping exiting entrepreneurs. Managing the tax implications of funds from the sale is a big job that most business owners aren’t prepared for on their own. 

What’s It Like to Sell Your Business?

Look to HEMP for entrepreneurial insights

I think a lot of Kansas City business owners don’t realize that many of HEMP’s educational events are open to guests (for a small fee), not just HEMP members. Not only are the sessions a great way to learn about the ins and outs of being an entrepreneur, but they’re a fantastic opportunity to connect with other business owners in our community and learn from them. Be sure to follow HEMP on LinkedIn to hear about upcoming events you can attend. 

As a HEMP fellow, I’m thrilled to go to as many of these sessions as I can to build relationships in the entrepreneurial community. And the HEMP team puts on a great event every time — have you been to an event with a dirty soda bar yet? If not, you’re missing out. Managing Director Christina Dreiling and her team are always surprising guests and members with something special. 

What’s It Like to Sell Your Business?

Get tech help in a hurry from the Corporate Technologies team

Even if it’s years until you sell your business, you need your IT systems in tip-top shape today so you can do your best work in the meantime. The experts at our Kansas City office can help your growing business stay ahead of tech troubles and make your work more efficient as you progress toward your goals. Talk to us about your IT challenges and we’ll get right to work.