The past few months, I have launched a new series called “Leadership Exposed” on our podcast. This idea was born as Steve Scherer and I were thinking about new ways to...
4 Things to Consider
Let’s talk about selling your business.
Cue the theme music to the movie Jaws. I see the terror on your face as you think about a larger predator ripping your business to shreds. I see you imagining your staff scared, legs dangling in the water, unsure about what’s underneath. I see you mentally swimming helplessly out in the open ocean, making life-changing decisions without clarity on what’s to come.
Stop the music. It doesn’t have to be like that.
Now cue the ukelele. Picture a calm sea, a sweet breeze, a sandy beach and your friends and family sipping Mai Tais next to you as they congratulate you on a very challenging but very successful decision that you just made. To stick with the sea theme, you just took your small fishing boat and transformed it into a large fishing operation where everyone benefits.
It doesn’t have to be Jaws. It can be Mai Tais, instead. Selling your business doesn’t have to be wrought with fear and anxiety. It can be an enjoyable process that lands you and your co-workers in a better situation.
And sometimes, it’s just the right decision for your business.
Nick Starr of Starr Group Insurance in Milwaukee, Wis., is a third-generation family business owner. Recently he and his leadership team decided to roll their business into Acrisure, a larger insurance firm.
Starr notes that it was clearly the best decision for their company for several reasons: it provided a succession plan for the second-generation owners, offered a larger breadth of services to their clients, and allowed the Starr Group to continuing operating in the same way with the current leadership in place. He says it was a great opportunity for growth without losing who the Starr Group is.
Every situation is different and so is every business. Whether it is the right decision to sell, or not, you can simply consider selling without feeling like you’re drowning. Ask yourself the following:
- Does selling align with the vision that you have for your business and its growth? First you must identify what that vision is. Do you see yourself handing off everything related to the company? Or do you want to maintain the day-to-day operations as they are? Maybe you want partial say in large decisions but no say in day-to-day. Maybe you have a vision for growing much larger or maybe you just want your current employees to continue to do what they are already doing. Identify what is best for you and the company, look around in the market and begin conversations with a variety of larger players. See if your vision is even an option.
- Have you communicated well with the other shareholders, owners or leaders in your company? In the words of the IOL team, embrace the awkwardness. This means don’t shy away from hard conversations, especially in the case of fellow family members who are also stakeholders. Nick notes that communicating well about key decisions has been the ticket to Starr Group success. He was willing to sit around the table with those who were a part of the decision and hash out all the good and bad, options, challenges, fears and rewards of selling or not selling.
- Will the wins outweigh the losses? There aren’t many cases of only wins and no losses. Something will have to go. It might be something simple like a name change or it might be something big like a leadership transition. Whatever it is, make sure that what you gain is larger than what you lose. Weigh the things that matter to you; decide which are priorities or “big rocks” in the jar. Once that’s clear, you’ll be able to see if what you’re sacrificing aligns with your goals.
- Are you keeping intact what’s most important? For the Starr Group, their vision and mission were most important to them. Rolling into Acrisure, allowed them to stay at the helm, ensuring their vision and mission would stay the same. What is most important to you? Staffing? Retirement? Find a partner that understands and offers a partnership that is the best fit for you and your values.
If you are considering selling, beginning to examine options, well into the process, or have a story to tell about your experience, we’d love to speak with you further. Please reach out!
This post is loosely based on IOL Podcast #141: Vision & Culture Attract Talent with Nick Starr from the Starr Group. Give it a listen.
Blog Written By: Ashley Buenger
