Get a FREE copy of Jim’s newest resource, “87 Things an Owner Needs to Know About Selling Their Business”: 下载

The Importance of Accountability When Selling to Key Employees

罗伯和兰迪 have a successful 22-year business relationship. While they are not ready for retirement, they have asked me to help them plan to sell their professional services business 四到六年后.

Instead of selling their business in the open market where they’d likely be bought by a competitor, 罗伯和兰迪 want to sell to their three key employees. 然而, those employees don’t have the financial strength to buy the business, even assuming they could get a bank loan for part of the deal value. This means 罗伯和兰迪 will have to be paid over several years, which introduces obvious risk. What if the business fails because the three employees can’t work together? What if they can’t keep the current client base?

There are lots of ways the deal could go south after the sale. 罗伯和兰迪, 因此, want to craft an employee transition plan that doesn’t leave them with too much risk. 幸运的是, 他们有时间, so I suggested they begin to offload some of the business decisions to these three employees to see if/how they can work together. 要做到这一点, 罗伯和兰迪 will create an executive committee with these three employees and begin to bring them into every decision the business has to make. By the end of 12 to 18 months, 罗伯和兰迪 will have a good idea of how the three employees work together. If that construct is as productive as hoped, 罗伯和兰迪 will then begin to pull back from client development.

Over the course of two to four years, 罗伯和兰迪 will have a clear sense of whether these three employees can run the company together. If so, there will be less risk for them taking payment over time from their three key employees.

Of course, a plan like this works only if the owner has the advantage of time to prepare. 此外, the owner has to be genuinely committed to offloading decision-making and client development (in other words, stepping away from the day-to-day functions of the business). 还记得, any plan for any purpose is only as good as its execution and time to see it come to fruition. 罗伯和兰迪 have asked me to meet with their newly formed executive committee each quarter to hold everyone accountable to the plan. It’s not that the plan needs me, 本身, but the plan needs some third party with the confidence and credibility to ask the hard questions that keep the parties focused on the objective.  I’ll tell you in a few years if this plan works.

 

JIM CUMBEE is President of 田纳西河谷集团, Inc. 一个retainer-based business brokerage and transition mediation 公司位于田纳西州富兰克林. Cumbee is an attorney and has an MBA from Harvard Business School. 吉姆是这本书的作者 韦德体育app官网 Run, A Pro’s Guide to Selling a Business. http://www.amazon.com/Home-Pros-Guide-Selling-Business/dp/1599329239 .  He has a wide range of corporate 和企业家ial experiences that make him one of the most sought-after business transition advisors in the state of Tennessee. The principles above are true, 但是故事, names and fact patterns are changed to preserve the parties’ identities.

 

The following two tabs change content below.

田纳西河谷集团

吉姆Cumbee established 田纳西河谷集团 to help business owners fulfill their dreams for life after business ownership. It’s a mission that his 30+ year career history had prepared him well for—in addition to being an attorney, transition mediator and business broker, 吉姆是一个买家, 卖方, 和企业家. His broad range of experience gives him unique insight into how business buyers and 卖方s can achieve their goals.

Latest posts by 田纳西河谷集团 (看到所有)