Shoulder to shoulder: Weathering the storms of a business exit

About a year ago, on a Thursday, I was introduced to a family planning to sell their family business the following Monday. Two generations of the family were actively working in the business which had been in existence for more than 50 years. The tension was palpable. The stress levels were intense. There was fear of the deal falling through at the last moment. The process had been gruelling for them; full of questions and insecurity. Excitement needed to be controlled to avoid “jinxing” it. They had even avoided making certain decisions about whether to hold the proceeds in a structure because they were sure that the deal would fall through if they began to “count their cash” before it had been sold.

Business owners are experts about a specific thing. They know everything there is to know about their world. They have been in control and have had responsibility for its successes and failures. The real challenge is what follows the sale? What does the Monday after look and feel like? What if it isn’t the dream come true that they are led to believe after an exit? How can you work toward that happy ending?

I have spent the last year on a journey with this family. It has been a mix of identity crisis, frustration, nerves, insecurity and excitement. We were tasked with helping them to think about how to deploy the proceeds across investment managers, private investments and pots of cash. We also needed to consider structuring options and plans for the future of the proceeds past their lives.  It has been a journey of learning. Offering a safe space to ask questions, getting their heads around financial jargon, understanding options and discovering what good would look and feel like has been our most important role. We needed to build trust and stand shoulder to shoulder with them as their knowledge and confidence grew.

After analysing proposals from lawyers and tax specialists, researching investment managers, comparing performance data, discussing the softer relationship points of the teams, looking at other required services we set up a beauty parade. All this time the family felt in control and confident that they had someone to trust on their side of the table. They had someone who understood what good would look and feel like for them. We prepared them for the presentations, helped them to build questions and ways to compare the teams who would pitch. This is where being unconflicted was critical-we did not hold a vested interest in which firm was appointed so we could always have their best interest at heart.

In the end, the feedback we received said it all.

They felt heard. They were in control but had a trusted partner to be with them on their journey. They believed that the process had been transparent and fair. Each manager was invited to bring their best to the process. The family acknowledged that they would never have found the team they had chosen without help. They thought they would have made a mistake by not having been able to see and understand the data across firms and teams.

The challenge for them now is figuring out what tomorrow brings.

How do you find purpose after the sale of a business? Is it by bringing passion to philanthropy? Is it by mentoring? Do they sit on boards in the sector where their experience has value? Those decisions will come in time. However, the pressure of finding a safe place for the proceeds of a lifetime’s blood sweat and tears is relieved. The family has seen the value of unconflicted support and advice. They feel in control and confident that the team they have chosen will act in their best interest and be a partner in the future of their wealth.

It was such a satisfying journey to walk alongside this family. Trust is earned over time and we were grateful for the opportunity to have joined them along the way. We are excited to see what happens next.