What’s My Role?
For a business owner selling a business it is a whirlwind of emotions and activities. From the initial decision to sell to the final handover every step along that journey is filled with anticipation, and excitement tinged with a touch of nostalgia.
However, along this journey, there is often one critical conversation which is overlooked: the role of the business owner after the sale is completed.
The lack of this conversation was the topic of my conversation with a business owner this week who had recently settled on the sale of their business to a larger player in their industry.
Despite agreeing to stay for 12 months to assist with the transition to the new owners, there had been no discussions about the role and responsibilities of the owner during that period. Consequently, the owner was frustrated as their workload did not diminish as was anticipated. Instead, they found themselves managing the business while also working to transition existing systems and processes to the platforms used by the new owners.
To address this issue, the owner committed to taking the initiative to have conversations with the new owners to clarify their and her expectations:
- Succession: The owner will make it clear their commitment to the business is for another 12 months, after which they will leave. Therefore, regular discussions about the plan to smoothly transition the owner out of their managerial role were required; and
- Operational: The owner’s operational responsibilities during the transition period needed to be clearly defined. This involved discussing the expectations of the new owners regarding their role in the day-to-day operations.
By initiating these conversations, the business owner was aiming to implement a structured and manageable transition process for both them and the new owners. Effective communication and clarity regarding roles and expectations are crucial elements in facilitating the owner’s successful transition out of the business after its sale.