Whose Advice Should A Founder Take When Selling?
When it's time to sell your business, choosing the right advisor is key. Selling a company is complex, and the right guidance can make all the difference. With many voices offering opinions, it's vital to know which advice truly adds value.
Here’s a simple guide on how different founders can navigate this stage and make smart choices.
Types of Entrepreneurs and Decision-Making
When selling a business, entrepreneurs usually fall into one of three types:
The Independent Entrepreneur:
These founders rely on their own judgment and have often succeeded by ignoring advice that didn’t fit their vision. However, selling a business is different—going solo isn’t recommended. Even if you don’t hire an investment banker, having an experienced M&A lawyer is a must. They’ll help you manage the deal’s complexities and make sure key details are handled correctly.
The Information Gatherer:
This entrepreneur likes to gather as much advice as possible before making a decision. While information is helpful, too much can be overwhelming, especially with so many exit planning consultants and advisors offering their services. It’s important for these entrepreneurs to stay focused and not get lost in too many opinions, which can lead to confusion and delay.
The Focused Executor:
These entrepreneurs take a clear and organized approach to selling their business. They know it’s a big project that requires focus and few distractions. By concentrating on the most important advice and tools, they can successfully navigate the sale and get the results they want.
Key Advice for Entrepreneurs Preparing to Sell
Seek Expertise Wisely:
Not all advice is created equal. While it’s natural to rely on your own judgment, selling a business involves unique challenges that require specialized knowledge. At the very least, engage with an experienced M&A lawyer to guide you through the process.
Avoid Information Overload:
While gathering advice is essential, too much input can lead to confusion. Be selective about whose advice you seek, focusing on a few trusted experts rather than casting a wide net.
Adopt a Focused Approach:
Treat the sale of your business as a critical project. Minimize distractions and concentrate on the advice that aligns with your end goals. This approach will help you make clear, informed decisions that lead to a successful sale.
Key Terms Explained
M&A Lawyers: Legal experts who specialize in mergers and acquisitions (M&A). They guide you through the legal steps of buying, selling, or merging companies.
Exit Planning: The strategic process of getting a business ready for sale. This ensures a smooth transition and helps the owner achieve their financial and personal goals.
Slow Productivity Methodology: A concept by Cal Newport that focuses on working with deliberate attention and reducing distractions to produce high-quality results over time.
Selling your business is a major decision that demands careful thought about whose advice to follow. By knowing your entrepreneurial style and staying focused, you can successfully manage the complexities of the sale and achieve the best outcome. The right advice can make all the difference, so choose your advisors wisely and keep your goals in sight.
