An email I recently received. 
I am expecting an offer from my partner to possibly buy me out. If this falls through I will contact you.

​My response. 
Thanks for the update. Food for thought. I recently had a conversation with another Owner we have been talking with over the last couple of years. His plan was to buy out his partner of 30 years or have the partner buy him out. The partner chose to be the Seller.

The Buyer, our contact, chose to do the deal on his own. We offered our services but he declined as he knew his partner well and they have had a 30 year relationship. After literally a couple of years of discussion the deal was supposed to finally close on January 2, 2017. 

It has so far not ended well. They are no longer friends, the Seller continues to go back on his word and change the deal and the whole sale may never happen. The result will potentially be metaphorically like 'a divorced couple living in the same house'. You don't really know someone until you negotiate with them from opposite sides of the table.
Sadly, as of Jan. 22, 2017, it still has not closed yet. The Buyer and Seller no longer trust each other and a 30 year friendship is ruined.

In another case the Owner was planning on his key person buying the business, although he never actually asked him if he was capable or interested. When the question was finally posed the answer was no he was not interested in buying within the Owners timeline and no he did not have anywhere near the funds. Unfortunately that was the Owners only play.

Isaac (my partner) and I would like to offer our services to help you and your partner engage in a harmonious and mutually satisfying transaction. 

Not trying to be heavy handed or negative but the examples above represent only two recent attempted Sales By Owner. 

Please let me know if you would like to discuss. 

We wish you all the best in a positive and successful sale.

​Cheers, Eric
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Readers

In case you believe one of the examples is you, know that it's likely not. This happens far more often than you think.

The current buzz in the business transaction world is that 2017 will be an incredible year for selling a business. Are you ready?

As always, I am available for a telephone conversation or a coffee.

Cheers, Eric

​My son and I got into a conversation about Trump the other day. And of course the inevitable what do we do here in Canada about our own leadership. 

As we talked I realized that our discussion was less about the specifics and more about our own generational concerns and how the implications would affect us personally. 

So with that clarity I understood we likely would never agree on everything and we both need to work hard to appreciate the impact the upcoming changes will have on each other.

There is a parallel between this conversation and a generational or transitional discussion about a business, regardless of it being family based or not. Most, if not all companies are being run by 2 or possibly 3 generations.

The thought I offer to you is this.

Get The Best Out Of Everyone 
Excerpt from 'Moving Forward'.

​When you sell or transition you need to make sure your successor understands the value of getting the best from everyone and you need to help them. They might be a family member, a long time employee or an outside acquirer. In any case you want the new Owners to have as much success as possible. Particularly if part of your compensation is tied into the future financial achievement of the company.
 
The new management may have been groomed to run the family business, in some cases, for their entire adult lives. Or you may decide to offer a loyal employee or management team member that opportunity. The originators of the business often try for years to educate, share their experiences, impart their wisdom, and mould their successors. Some succeed others don't. Family isn't always the best choice. In fact it's more rare than you might think.
 
Share what made you successful and make sure that goes for everyone involved with the company as well. Give the new Owners complete and unfettered access to you and the senior management team. An immediate and never ending inside edge to the key goings on of the organization.
 
Some of the same benefits (experience, familiarity, and loyalty) can be gained from non-family, non-management employees and business associates who offer expertise and experiences that are different from yours. They may not be an Owner but what they offer is invaluable. Make sure you pass this insight and access on to the new management.
 
In some cases the new generation will continue to operate the business as it had been run in the past, a safe short-term measure.
 
This strategy may have worked for the previous generation, but circumstances are changing at a dramatic pace. We are living in a time of new technology, new needs, and new ways of approaching problems. E-commerce, database marketing, social media, big box and online stores, branding, and many other new terms have not only entered our small business vocabulary, they have taken business over.
 
As part of the older management you may be set in your ways, a little tired, and perhaps a little too comfortable with a particular style of conducting business that has provided you with years of triumph (usually tempered by a few bumps in the road).
 
The younger management may be full of energy and have new ideas for reinventing the business. But working together, you both need to blend the best of both generations. Preserve the successes from the past, incorporate the new opportunities, and build for the future.
 
A reminder to the older generation: not everything old is good nor is everything new bad.
 
To the younger generation remember: not everything old is bad nor is everything new good.
 
​As always, I am available for a telephone conversation or a coffee.

Cheers, Eric
​