Initial Thoughts of Selling Your Company

Assuming you understand WHY you want to sell your tree care company and are emotionally ready to give it some legitimate thought, there are SO many factors to consider. Beyond the idea that you are no longer in charge of the company, and someone is now your boss, here are some initial key things to ponder:

#1 WHY are you Interested in Selling?

Depending on your age, size of the business and many other parameters, selling your business could make sense. If you are looking to retire, looking to get out of the business, have medical concerns or are looking to step back from ownership, then selling your business could make sense. Don’t be confused about reasons you COULD sell your business versus WHY it actually could make sense. Before you run off to the Caribbean to put your feet up, truly understand your feelings. Any company buyout should mutually benefit both parties.

#2 Desired Outcome

In a perfect world, a seamless transition would include 100% client and employee retention, receiving a buyout higher than the company’s value and you are set for life financially. You also have the option of staying on board to “oversee” the transition period. In reality, you will most likely sell your company for less than you think it’s worth, employees will leave, clients will move on and in a few years, you will barely recognize the fragments of your company. Be prepared to visually and mentally see your company dismantled piece by piece. It will happen.

Reality from The BIG Oak = For both national buyouts, it took me about a full year to mentally disconnect from all the major changes.

#3 Are you Emotionally Ready to Let Go?

This can be one of the most difficult things to consider for business owners. For me personally, I was my company. Letting go meant letting go of my persona. Because I have constantly had an influx a creative ideas and desire to improve, I was never fond of someone else being in charge. I think this was without a doubt the toughest hurdle for me.

Reality from The BIG Oak = While I pondered it frequently, it legitimately took me FOUR years to mentally prepare to let my company go and give up control.

#4 The Impact on YOUR Life

If selling your company will NOT improve your life, then absolutely don’t do it. Unless selling improves your life personally, mentally and financially, consider other moves. Having regret can stay with you for the rest of your life.

Reality from The BIG Oak = I was “sold” on the idea of working less hours, having less stress and relying on others to assist. However, the exact opposite happened. Following the buyout period, I worked more hours and was much more stressed than I was as an owner (and I worked non-stop). Make sure there is actually a system or team in place to help. I truly felt (and still feel) my reputation as an arborist, business owner and a person was severely damaged by the buyout.

#5 The Impact on Employees and Clients

This is a very tough consideration, especially when you have had employees for 20 to 30 years. These employees are like family and the impact on their future can play into selling a business. Many employees and clients are threatened by change and will be skeptical about a buyout.

Reality from The BIG Oak = I highly recommend starting a business with an end in mind. This helps avoid emotional decisions like feeling guilty for your employees and the possible impact of the buyout. When employees know the company (from the beginning), it can prepare them. It also gives employees a chance to potentially purchase the company themselves.