The Right Way and The Wrong Way to Exit Your Business

We welcomed long-time EO member and co-CEO of Herman ProAV, Jeffrey Wolf to the stage to talk about his experiences in exiting enterprise. We got down and dirty, talked through the “learnings” and failures, as well as the successes. 

Below find the highlights of our session with Jeffrey Wolf. You can also listen to the full session above!

This week’s show concentrated on the dos and don’ts for exiting your business with insights from a number of successful entrepreneurs.

For an entrepreneur, exiting your business can be an exciting and potentially nerve-wracking experience. With that in mind, here are some top-level things to consider when embarking on the exiting process.

Experts

Surround yourself with experts in things that are outside your wheelhouse. Hiring a banker, lawyer, or facilitator with a successful track record in concluding company sales should help with a smoother transition for everyone involved. The transaction details of a company sale take a lot of time and attention and that can distract an entrepreneur from the important day-to-day operations of their company. If you are focusing on the sale, you are most likely not focusing on the business and that can derail a sale.

Emotional Impact

There’s also an emotional impact when selling the company that you’ve put your heart and soul into and having outside help from experts that aren’t emotionally involved can keep the sale moving in the right direction. Having outside help to focus on the important details of the deal can potentially ease some of the emotional impacts that an entrepreneur and the company’s employees feel during this period of transition. It’s also helpful to be as honest as legally possible with your employees during this potentially stressful time. You want your employees focused on their jobs and not on what might happen after the sale.

Right Buyer

Moreover, finding the right buyer is also important when selling your company. If your company systems, culture, and employees don’t fit with a potential buyer, this can lead to difficulties when negotiating a sale. If a potential buyer shares your same or similar core values and also shows that they value your employees, this can result in higher value exits.

Relationships

In addition, when another company buys your company, they are also buying your relationship with your partners, customers, suppliers, and employees. So having solid and positive relationships across the board can be key to concluding a sale.

Minor Majors for Maximum Impact

This week, we explored the transformative concept of "micro moves," small yet impactful actions that can propel a startup toward success. As co-host Michele...

Startup Secrets: Scale with AI

In this episode, we sat down with Jose Moreno, founder of Neulight and a veteran of big tech companies like Microsoft and Netflix. Jose...

Boss vs. Coach: Leadership Balance

The entrepreneurial journey is a demanding one, requiring founders to wear multiple hats as they navigate the complexities of launching, scaling, and managing a...

Timing the Sale of Your Company

Timing is everything when it comes to selling your company. In fact, 50% of the value you receive from a sale can hinge on...

Redefining Wealth for Entrepreneurs

Achieving wealth that extends beyond financial gain is a concept many entrepreneurs strive for but often overlook in the pursuit of success. In a...

Leadership Debate: Founder vs. Manager

In today's podcast episode, we witnessed an engaging debate between Michele Van Tilborg, Founder of Meowingtons and CEO of Paw.com, and Colin C. Campbell,...