What Is It Like to Sell a Business? Seller Interview with Dan Who Sold His Business

Have you ever wondered what it's truly like to sell a business, especially when it's your first time? Get ready to uncover the secrets, challenges, and triumphs of this remarkable journey as we peel back the curtain and reveal the reality of selling a business through firsthand experiences of a fellow business owner who has successfully navigated the sales process. 

This is not your typical business advice session; this is a candid conversation filled with valuable insights straight from the heart of someone who has walked the path you're about to tread. Picture this: a seasoned business owner sharing the raw and unfiltered truth about their exhilarating journey from business ownership to business sale. 

Whether you're on the brink of selling or just contemplating the idea, this episode is a golden opportunity to gain invaluable firsthand knowledge from someone who has stood exactly where you're standing now. Don't miss out on this enlightening conversation that's tailor-made for business owners like you, looking to conquer the world of business sales with confidence and success. Your guide to selling awaits – let's embark on this journey together!

Visit us at:
Bsalesgroup.com
DesignMySale.com

Transcript

Hello and welcome to M&A: Murders and Accusations. The Good, the Bad, and the Ugly of Selling Your Business. We dig into what you need to know and how not to kill the sale of your business. Now, here's our host, Rick J. Krebs, Mergers and Acquisitions Advisor.

 

Hello, everyone, and welcome to M&A: Murders and Accusations. This is Rick J. Krebs, coming to you from the mountains of Utah. We'll discuss the good, the bad, and the ugly of selling a business, and I'm excited to introduce you to my guest today. My guest is Dan Steed. Now, is it Steed or Stead?

 

And it is Steed. That's how we pronounce it.

 

And we worked together, I just knew you as Dan. So anyway, I'm happy that you're willing to join us today, Dan, and I'm pleased to have you.

 

Well, it's a pleasure to be here, Rick. Thanks for the opportunity to share my story.

 

Let's start before the sale. Tell us a bit about your business and how you got started.

 

Well, we moved to Utah from Texas in 2007 and joined a small startup firm. The work we did was in the area of charter school development, and the economy came to a halt in 2008. The funding for our projects dried up, and I was left without work and six mouths to feed. I quickly had to determine what I wanted to do and how to move forward. A friend of mine had moved to Utah from Texas around the same time, and he had always been in the lawn care and pest business. He started that business when he came to Utah and grew it. Eventually, he couldn't manage all three businesses and asked me if I was interested in pest control. I initially wasn't, but I decided to buy his business, which had about 100 customers at the time. Over the years, I grew the business to seven trucks and around 10 employees. We recently sold the business in spring.

 

So it's interesting, Dan, your business was sellable. It was a very sellable business, and after we had it under a contract, we had multiple buyers interested. Congratulations on building a great business. So, Dan, what brought about your decision to sell? What was the impetus?

 

There were a number of factors. Two years prior, I lost a key employee and had been looking for a replacement without success. The additional workload was falling on me, and it was becoming taxing. I felt married to the business and wasn't giving enough attention to my family. Additionally, I was getting older and wanted to explore new opportunities as part of my retirement plans. There were also two young employees who expressed interest in taking the business forward, which influenced my decision to sell.

 

How long did you think about selling before we met?

 

When I bought the business, my intention was to grow it into a valuable asset for retirement. I didn't think about selling daily, but over the years, the idea grew stronger. About a year before we started discussions, I started seriously considering the possibility.

 

Was it a hard decision for you to sell?

 

It was a mix of emotions. Selling felt like letting go of something I had invested a lot in, but the potential for more freedom in my life was very appealing.

 

Was the stress of selling greater than running the business?

 

In my case, it wasn't. The selling process was relatively stress-free. I had a lot of confidence in the business's financial health and the buyers' competence.

 

How long did the sale take, from start to finish?

 

We began discussions around August of last year and closed the sale in late January of this year, so it took about five months.

 

Did you do a seller note or earn-out as part of the transaction?

 

Yes, I had to carry a 15% seller note as part of the SBA loan requirements. While I'm not fond of it, it was necessary to make the deal happen.

 

Tell me about your biggest takeaway or aha moment from the sale process.

 

The importance of having a trusted advisor like you, Rick. Having someone with experience who can navigate the process and provide insights is critical. Going through this alone could lead to costly mistakes.

 

Were there any mistakes you think you made or could have done better during the process?

 

While there might have been minor things, there's nothing glaring that stands out. Maybe the question of whether we got the full value for the business lingers, but overall, it was a successful process.

 

How about the transition after the sale? How did that go?

 

The transition went smoothly. We had a company meeting to inform employees about the new ownership. The new owners assured employees that not much would change, which helped retain the team. We had a training period for the new owners to understand the business's systems and processes.

 

What are you up to these days, now that you've sold the business?

 

I'm focusing on consulting and possibly some independent sales work. I'm also catching up on things I put on hold while running the business. It's been refreshing to have more time for family and personal interests.

 

Do you have any final advice for listeners who might be considering selling their businesses?

 

Don't go through it alone. Having a trusted advisor and the right team is crucial. Building trust with the buyers and ensuring a smooth transition for employees and customers is essential for a successful sale.

 

Thank you for sharing your insights, Dan. It's been great having you on the show.

 

Thank you, Rick. It's been a pleasure sharing my experience.

Thank you, everyone, for joining us on this episode of "M&A Murders and Accusations." We invite you to stay tuned for future episodes where we'll continue exploring the world of buying and selling businesses. For more information, you can visit our website at www.bsalesgroup.com or email Rick directly at rick@bsalesgroup.com.