How long should I be staying around after selling my business

Selling my business and how long I should be staying around after selling my business is a subjective decision.

Many owners think that the exit of their business to a new owner will be simple. A business sale is not that simple. The seller often doesn’t consider the implications of staying after they sell their business. How long and why will depend on your stay with what the new owner sees as perceived value.

Some small business owners have the perception that, like selling a house, they will hand over the keys; in return, they will get a bag of cash for their business.

Exiting a business is very different from selling a house.  It an emotional time. In fact, the Exit plan, your mindset, and the value of your business are critical factors for business exit success.

Why I should be staying around after selling my business?

Studies have shown that the more an owner is willing to remain involved in the business after exit, the more valuable the company appears to be. An owner willing to accept any option beyond handing over the business and walking away will have a 4-5 times more valuable business than those who don’t hang around!

Sometimes it’s tempting to move on quickly to do other activities. But take a minute to work out how ling you need to help a new owner

There seems to be a premium paid by the buyer for an owner to stay involved through the transition process. Why? In most cases, the customers want a transition, and often the old owner can pave the way. Offering this to the new owner taking over your business is a level of comfort that adds massive value.

Staying around after selling my business will add value?

Of course, some prefer you not to hang around; that’s fine too. However, either way, to make a business exit successful for both parties, offering to hang around for a while after you sell your business adds value to the exit process.