Several years ago, I was meeting with the owner and founder of a mid-size manufacturing company that employed around 200 people. We will call him Jim. He wanted to know if I could help him work with his people to prepare for the eventual sale of his company. Jim was in his late 60’s and ready to sell his company. When I asked him what his biggest concern was, he said, “Seeing one of my loyal employees on the street after I have sold the company – especially if I knew things weren’t going well with the new owners.”
Since this conversation, I have heard many retired owners say the same thing. What can we do to help ensure that the leaders who follow us are able to build a working environment just as good as we did, or even better?
Step #1: Start early: A good rule of thumb is at least five years from the handoff.
Step #2: Get the right people in key positions: Look at the key positions and make sure we have the “right people on the bus”. Our leaders must be proud of their work and the special qualities they bring to the company, and this enthusiasm must show. There also must be a way of measuring their progress. If someone is not the strong leader you are looking for find another place for them. Don’t waste precious time with someone you know isn’t going to work out.
Step #3: Strengthen communication and teamwork skills: Hire a performance coach to work with your team so that all departments develop the ability to work together seamlessly.
Step #4: (Two years out) Hire a succession consultant: There is a process involved in selling your company that needs to be followed You can figure about two years to allow proper time for each step. You will have a timeline.
Most owners procrastinate and don’t do these 4 things well. Don’t be one of them! Have a happy sale!
