Moving on: Avoiding seller’s remorse
As an entrepreneur, it could often just be a matter of time before you have the thought, "I want to sell my company." In technology fields especially, the market is fast-paced, and many firms are willing to consider mergers or acquisitions to help themselves stay ahead of the competition.
So, for those who are looking to sell their business, how can you be sure that you found the right deal? Or, how can you even know that there is a deal out there that will also be beneficial to the company you built up from scratch?
For starters, it is important to surround yourself with the right people to help you complete any M&A activity. Accountants, lawyers and investment banking firms can all be important assets in figuring out the details and ensuring that the best opportunity possible is found.
According to a contribution piece on "You're the Boss" blog in the New York Times, to avoid having seller's remorse, it is important for owners to take the higher offer and then distance themselves after a transaction has taken place.
Josh Patrick, the article's author, said that selling a business can be a "gut-wrenching decision," but if an owner accepts a lower price thinking that their company will stay exactly the same and not be changed, he or she is going to be disappointed.
"No matter what they might say, the new owners have paid you for the business and have the right to do with it as they see fit," Patrick wrote. "They are going to do this no matter what."
That being said, an acquisition is not a bad thing either. When two companies with complementary goals can find middle ground, they could find a deal that will benefit each firm as well as their customers. The key is for entrepreneurs to have the right mindset going in, and the right assistance can help them get there.