Q: You just sold a $12M business for a friend of mine, why would he stay and work for 2 more years after selling?
JT says: Great question, one that is often misunderstood.
‘Selling’ and ‘retiring’ are not the same thing. Many owners are not ready to retire but simply tired of being responsible for the day-to-day operations and related liability.
Some buyers ask owners to ‘roll-over’ equity (10% – 30%) post sale, then let the seller focus on what they like best (i.e.- Biz development, large loss, or CAT). There are various combinations to selling then working, but owners can take some chips off the table, secure their retirements, yet still contribute. This leads to a more enjoyable work experience and work/life balance.
Many view this as a nice half-step between ‘owning’ and full-on retirement.
Get Answers + Get Prepared = Get Retired
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