Post-sale Playbook: Top 5 Moves Owners Should Make After an Exit

You have worked so hard and so long to build your business. You deserve to make the most of the time that comes after successfully selling it to the right buyer. You have likely grown accustomed to dedicating your time and energy to your company, which may make it challenging and cause you to feel uncertain when navigating the new era that follows your exit. Some owners find this time easier to sort out than others. But it's okay to feel unsure about what you should be doing now, after years of pouring your life into your company. You know that it's time to focus on the future. But what exactly does that entail? Here are some important places to start.

1. Refocus on Your Relationships 

Finally! It's time for you to focus on you and the ones you love. It is not uncommon for business owners to have sacrificed a great deal of personal time during their years of building their business. Now that you have sold your company, you finally have the time and the peace of mind to reconnect with family and friends, and even forge new relationships. It's never too late to make up for lost time. Putting in the effort to make the most of your relationships will be just as satisfying as the rewards earned by selling your business, if not more.

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2. Create a Post-sale Bridge

Often, the sale of a company involves a period where the previous owner must help the new owner hit the ground running. After the deal is finalized and assets have been transferred, you will likely need to offer some guidance to the buyer on your best practices for running the business. Don't worry—this process typically takes only a few weeks, depending on your business's complexity. You should be prepared to remain hands-on to some extent, and you will likely still need to be available to answer questions or respond to emails. This can make a significant difference in maintaining key customer relationships and ensuring that things don't fall by the wayside now that you are no longer at the helm. It can also go a long way in comforting your employees by ensuring that everything is going to be okay and that stability will continue, and in clarifying key roles to maintain productivity.

After all, you worked so hard to make your business into a success story, you will want to take the last few necessary steps to ensure that it remains on the right path into the future. This is especially true if your deal structure includes earn-out terms, as the business's performance directly affects the rewards you reap.

3. Be Prepared for Both Time and Money

You'll likely find yourself with more time on your hands than usual. Some people love this, while others are at a loss for what to do with themselves. It's a good idea to have a plan for how you are going to spend your time. Will you be traveling, spending time at home with family, investing in an existing business, golfing, or maybe starting your next venture?

You will also need to be prepared for how your personal finances are going to change. It's fine to have a nice, healthy balance in your checking, savings, and retirement accounts, but you will not have the consistent cash flow that was coming from your business. Take the time to think about how to arrange your finances to ensure you enjoy post-sale life as much as possible. The last thing you want to do is be worried about money.

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4. Build a Post-Sale Advisory Team

To achieve the financial security outlined in Step 3, it is advisable to surround yourself with trusted M&A experts, wealth managers, and legal advisors who are familiar with the nuances of post-sale life. They can help to guide you through financial decisions and get you on the most strategic path to enjoying a prosperous second act, whether that entails relaxing by the pool or diving into a new start-up project. In any case, you will need to manage your remaining business interests and determine how best to strengthen your portfolio. Taking everything you already have and putting it in place to maximize its value is very important in this phase of your life. This can include diversifying your holdings, reviewing your liability protection, exploring new investment opportunities, and setting aside emergency funds to handle the unexpected.

5. Think About Your Legacy and Succession Plan

Maybe now you feel like it's a good time to give back. It can be incredibly fulfilling to get involved with your community, offer mentorship, or pursue philanthropy. This can include financial donations or the creation of foundations or scholarships for causes that you genuinely care about. As you contribute to the success stories of others, you also enhance the positive image of your business career. You can find a true sense of connection and purpose by helping others, even if it is only on a financial level.

Legacy planning often includes succession planning. Making sure that your business continues to thrive after your exit is essential, and this can consist of passing the business on to a family member or an employee. Succession planning is critical to ensuring that the company is in the right hands and that the necessary arrangements are in place to facilitate a smooth transition. It can also play a major role in the valuation of the business prior to a sale, because the buyer needs to feel confident in the plan moving forward that will keep the company profitable, stable, and poised for growth.

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