Follow Dallas Linkedin
Email Dallas Email
Business Growth
Sep 9, 2016

Selling Out Without Regret

Sponsored Content provided by Dallas Romanowski - Managing Partner, Cornerstone Business Advisors

I can't play golf every day.

My wife wants to see more of me — but not at every breakfast, lunch and dinner!

What do other ex-owners do after they've sold out?

Failing to answer these concerns can create vacillation, reluctance and, ultimately, an unwillingness on the part of many owners to proceed with planning for their business exits.

To examine these concerns, let’s analyze a panel of former business owners involved in the owner-to-former-owner transition. All three reported that selling out was the best thing possible for themselves and their families.

That said, each owner approached the sale differently and each has pursued different interests in the aftermath.

Tom Frankl was 62 when he sold his high-tech manufacturing firm. Tom was first prompted to sell when his accountant introduced him to exit planning and helped him put a successor management team in place.

Complementing this concrete exit planning step was Tom's realization that his emotional connection to the business was loosening. When these objective and subjective events converged, Tom began working with his advisors to orchestrate a sale.

Bill Dirrito, owner of a clothing and apparel manufacturing company, entered his business with one goal - reach $50 million in sales and sell out. Bill reached that threshold and determined he'd have to make a huge investment to retain his current market share, so he hired a transaction attorney and an investment banker and sold the company.

Unlike Bill, John Six, the 55-year old owner of a low-tech manufacturing company was not focused on an eventual sale. In fact, he didn't want to sell because he felt he finally "had it going just right."

When confronted with the idea that the time to sell coincides with the existence of continued upside potential, John started thinking about the hard times he'd been through. If hard times returned, he wondered if the company could survive and knew that losing his "upside" would be the least of his worries. He, too, made the call to his advisors.

Having all arrived at the closing table via different routes, each now-former owner has found a similar satisfaction in the decision to sell - and in life after the sale.

Tom arranged his sale so his employees kept their jobs and gained greater career opportunities. This gave and continues to give Tom more peace of mind. While he did not have a detailed plan in place for life after the sale, he quickly found new outlets for his energy.

He has become the "Park Superintendent" of his 70-acre property. He's spending time with his wife and family, has time to travel the world, is considering developing some farmland and has taken an active role in community philanthropy. In Tom's words, "One of the things I appreciate most in this 'retired life' is that it isn't a 'retired life' at all."

John echoes Tom's comfort with this decision: "Of course I wondered what I would do [after the sale] because I was in that business for 30 years. But the day I walked out of there I never looked back. I never missed it. It's incredible but my schedule is calendared 18 months ahead."

On John's calendar are motor-home vacations, developing an industrial park and expanding his world class collection of race cars. John leaves the house by 7 a.m. each morning and doesn't find his way home until late afternoon.

Bill, the planner of the group, anticipated that he'd need a place to go— outside of his home — on the day after the sale. He rented and equipped an executive suite and mapped out the first three months after the sale. Today, he spends time on his hobbies: golf, horses and motorcycles. He has educated himself about investing, advises other business owners and works collaboratively with his investment manager.

By any yardstick these former owners remain engaged and vital. They have moved into a new era in their lives — an era untroubled by financial concerns. Not every former owner has the same experience, but our firm believes owners who thoughtfully plan their exit increase the likelihood they will be satisfied with their exit and whatever follows. 

We’d like to sit down and talk about the role that we can play in crafting a future that works best for each and every business owner.

The Cornerstone team includes former C-Level executives, successful entrepreneurs and advisers who offer unmatched experience in delivering advanced, custom-tailored, results-oriented solutions for business leaders. As a member of the Business Enterprise Institute (BEI), Cornerstone is an authorized distributor of BEI’s content and Exit Planning Tools. We developed the Performance Culture System™ to help clients implement best practices and drive high performance throughout their organization. For more information, visit www.launchgrowexit.com, call (910) 681-1420 or email [email protected].
 

Other Posts from Dallas Romanowski

Bizjournalblockad
Ico insights

INSIGHTS

SPONSORS' CONTENT
Unknown 7112393341

Why Feasibility is Paramount to Success

Holly Segur - Lead Intuitively – Corporate Coaching
Pfinder john zachary

What You Need to Know About SECURE 2.0 and Its Effect on Individual Retirement Accounts

John B Zachary - Pathfinder Wealth Consulting
Untitleddesign2 4523114356

Cybersecurity and Productivity: Striking the Perfect Balance for Business Success

Barrett Earney - EarneyIT

Trending News

EPA Makes $3B National Announcement At Port Of Wilmington

Audrey Elsberry - Feb 28, 2024

OsteoStrong Opens On College Road In Wilmington

Emma Dill - Feb 28, 2024

Patricia Kusek Resigns From Endowment Board

Audrey Elsberry - Mar 1, 2024

Polyhose To Double The Size Of Its Wilmington-area Facility

Emma Dill - Feb 29, 2024

Report Finds Economic, Environmental Impact Of N.C. Railroads

Audrey Elsberry - Feb 29, 2024

In The Current Issue

Born To Create Affordable Housing

The competition is stiff, and the work is hard, but Stephanie Norris wouldn’t give up her job for anything....


Credit Union Preps For Life On Its Own

With more than 400,000 members and assets topping $4 billion, Raleigh-based Local Government Federal Credit Union (LGFCU) is articulating a...


Wilmington Health Expands ACO Activity

Wilmington Health has expanded its footprint in the area of accountable care organizations, or ACOs. ...

Book On Business

The 2024 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

2023 Power Breakfast: Major Developments