Are you planning to sell a business in Pittsburgh, New Jersey, New York, Connecticut, Maine, Massachusetts, Vermont or the rest of the state of Pennsylvania? If so, in many cases it makes sense to offer to stay on to assist your buyer. Oftentimes, this offer even increases the amount you will make when you sell. If your business emphasizes positive relationships with customers, this fact is particularly true.
Why Should You Stay On?
In addition to the possibility of increasing the sales price for your business, you might also enjoy staying on during the transition period. It can give you some time to adjust and gain clarity on your next steps. It will also give you a chance to transition your own relationships with your vendors, employees, and customers. If you are still ironing out what your new schedule or retirement plans might be, you may benefit personally from staying active.
What Duration Should You Agree to?
As far as how long you will stay on, the answer to that question depends on the business itself. If your business involves a lot of training or relationship building, the longer you can stay on, the better. It is also important to consider whether you will be staying on full-time or part-time. Again, this depends a great deal on the business itself and what is needed.
Transition periods typically range anywhere between one month and one year. There could also be the possibility for a long-term contract that you negotiate. In that case, you might want to agree to a much longer period of time. Perhaps you will work with the business for a few years and still bring in an income and benefits.
When is it Best to Walk Away?
In other situations, it is quite natural that a seller will not want to stay on. For example, if you’re planning to move cross country, staying on during a transition period might simply be a hassle. In many cases, it has been possible for an owner to train someone in a management position to help with the transition. That would allow you to completely walk away. Some business owners sell and then simply come back to assist in the form of a consultant.
Keep in mind that the new owner may have cultivated a different corporate culture, and it might be one that is no longer comfortable to you. You must remember that the business has now changed, and it could be very different from what you are used to.
However, the truth is that in most cases, you won’t simple be able to walk away because agreeing to help with the transition will greatly benefit your deal. If you are planning to sell a business in Pittsburgh, PA, New Jersey, New York, Connecticut, Maine, Massachusetts, or Vermont, please contact Inbar Group today. We can tell you more about what is customary to expect for a transition period when you sell. Whether you’re looking for a business broker in Pittsburgh or another city in Pennsylvania, New Jersey, New York, Connecticut, Maine, Massachusetts, or Vermont, give us a call today.