Am I ready for This?

I hosted a meeting last night between one of my sellers and a potential buyer. Without going into too much detail the Seller is a very attractive opportunity - growing at 15%/yr. the past three years with the growth rate accelerating. !uite profitable more than "# years of history and a mar$et that is very solid. %he buyer is a recently retired technology e&ec. coming from a company that has grown more than tenfold through smart ac'uisition and growth. (e)s decided he)d li$e to parlay that action on his own smaller scale. If you)re considering ma$ing the *ump to owning your own firm there are a few insights that were refreshed last night I thought I would share. (ere goes+ 1. ,hemistry. - -o not underestimate the importance of .uyer/Seller ,amaraderie and e&perience. / successful business transfer is going to re'uire an ongoing open candid supportive dialog from both parties. -o you share common values0 Is there a mutual respect0 If not move on - this one isn)t your deal. 1. 2rowth e&pectations. - 3art of last evening)s discussions centered around future growth opportunities of which there are at least three defined viable paths. %he buyer seemed to want to pursue all three simultaneously. I cautioned him that the $ey element in growth strategy is to recogni4e the challenge is understanding how to enable the cash cow to calve. -on)t 5657 *eopardi4e the e&isting cash flow stream by over-reaching. %a$e a slow and steady approach. (is past employer too$ 18 years to grow ten-fold plus. -on)t lose sight of the fundamentals. ". 9now what you don)t $now. If you)ve never owned your own business when you slip into that chair it)s easy to become overwhelmed. Instantly you are supposed to be the :go-to: for everything - overall strategy ;inance decisions (iring <perations =egal issues . . . and the list goes on. Identify early on your personal strengths and competencies. In my e&ample the buyer is very capable in the areas of strategy I% 3rocess ;low and 2eneral .usiness. =ess so in the areas of operations and finance. ;ortunately for him one of the $ey players at the company who will remain if the sale goes through loves -and owns- the operations piece. (e)ll li$ely see$ assistance from a ban$er or ,3/ to come up to speed on the finance/accounting side. /s you identify your personal areas of wea$ness when you see$ help be sure to fully vet who you)re considering. >. %ap your soul. /s$ yourself the 'uestion :Why am I here0: If the reason you are attracted to this opportunity is you saw the cash flow and said ?internally@ :I want some of that: you)re li$ely in for disappointment. If on the other hand you said :I believe in the business model li$e the company)s core values and strengths have a basic understanding of the mar$et and industry and something about it stri$es a chord inside of you from your past then this could be the oneA /s this potential transaction moves forward I)ll do everything I can to insure the .uyer is fully informed help him with those $nowledge gaps - after all he)s never bought a business before - and ensure both sides are transparent. Bou may as$ why0 - aren)t you supposed to represent the seller0 <f course I am. .ut you see I learned long ago -from a personal sale - that the best way to have a happy seller long term is to have a happy successful buyer.