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How to Handle the Acquisition of Your Business

Handling the Sale of Your Business

Building a business comes with a lot of hard work and responsibility. Aside from the financial gains that come with building a business there comes a great sense of pride in its successful accomplishments.   No doubt many times throughout the years of the business building more than once the thought occurred that you look forward to the day you can sell it.  When that day does arrive though, it may not be as satisfying as you imagined it to be.

Many business owners really don’t realize just how emotionally attached they become to their company.  Of course they look at it as their cash cow. It is what has provided for them financially for them for many years.  Now they are about to hand over the control of it to someone else.  This control may have been a pattern for many years and all of a sudden it will no longer exist.  There is a ton of mixed emotions.  There is the emotion of excitement of knowing you as the business owner will no longer have all the responsibility that you will be free.  On the other hand, the thought of someone else running the business that you care for so diligently is now going to be someone else’s task.  On top of all these feelings you may be a little frightened financially because you no longer have the security of your business.

It is not uncommon for those acquiring the business to as the previous owner to stay on with the company for at least a period of time.  If this is your situation then you need to be sure you will be able to handle your new role.  Make sure there is a time frame set for this. You now will be reporting to someone else instead of everybody reporting to you.  It is a good way though of being able to transition out of the company and gives you a chance to adjust.

You have to change your way of thinking about the company from the moment the new owners take over, and this includes acceptance of the staff they bring in, and accepting the fact they may let some employees who you hired, go.

Your new role is to teach the new management the workings of the company, but ultimately the end decisions are now theirs. You cannot let this affect you if you don’t agree with them. You have to remember the reasons why you allowed the company to be acquired and that these reasons are now your goals.

Chances are your hours at the company are going to be reduced and you should use this extra time to start focusing on implementing the plans that you have for your future.  You are moving on now and you need to prepare for this.

 

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Sam Seidman, CPA, CA, LPA
629 Sheppard Avenue West
Toronto, Ontario
M3H 2S3

Telephone: (416) 398-1700
Fax: (416) 398-6226

Chartered Professional Accountant, Chartered Accountant, Licensed Public Accountant

Email: sam@torontoaccountant.ca

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