Time to Leave But Don't Want to Let Go? Reinvest in Your Company.

You can have your cake and eat it too.

I was working with a client who had done an amazing job building his company but was toying with moving on. He had grown it to earn five times what it was making when he acquired it and added new products and loyal clients. No one customer made up more than 5% of the revenue, and the company had 50% repeat business. Sweet situation. Why sell?

The seller was bored and wanted a new challenge but knew if he kept the company a few more years, he could double it.

Solution--the seller decided to re-invest 20% of his proceeds from the sale back into the "new" company. The acquiring company had deeper pockets to build it to a much larger firm and had skill sets that would allow that growth to happen.

The seller now would be able to build another venture to hold his interest while he continues to increase equity in the business he built. This also, of course, gave the acquiring company comfort knowing the seller had enough confidence in the firm and the industry to put his money where his mouth is.