Best of both worlds? How to sell your business and keep your best clients

When considering selling your business, there are lots of factors to think about and many potential routes you could take. Many business owners choose to stay on as an employed adviser after the sale has completed.

Sometimes known as “sell and stay”, this option has a myriad of benefits for both you and your clients. It can also be attractive to buyers and help you in the selling process.

If you are contemplating the sell and stay approach, here are some factors to consider.

Sell and stay allows you to sell your business but stay on as an employee

There are many reasons why you may want to sell your business. However, just because you want to sell, it doesn’t mean you want to stop working with your clients.

A sell and stay approach allows you to potentially have the best of both worlds. You can sell your business to a buyer, receive a cash payout, and be relieved of the sometimes-thankless responsibility of running the company.

Then, after the sale, you can stay on as an employed adviser. This allows you to continue to service your clients and receive a regular income without having to worry about the day-to-day running of the business and other big-picture issues.

The benefits of sell and stay

Sell and stay has several advantages that may make it an attractive option for you when selling your business:

• A significant financial payout
• The security of regular income from employment following the sale
• The opportunity to continue to develop professionally
• Reduced stress and risk
• You can continue to build relationships with your clients
• Your clients have more continuity
• Your employees have more continuity
• Your business could be more attractive to buyers as you are a valuable asset.

Potential downsides to consider

Of course, there are some potential downsides to staying on as an employee at your business. These mostly relate to how you envision your life following the sale of your business, and your reasons for selling.

If you’re selling because you want to pursue a new venture, or to simply enjoy the fruits of your labour on a beach somewhere, staying on as an employee could prevent you from doing this. You could be working full-time hours, which may make it tough to fit in new projects, hobbies or holidays.

It’s likely to mean stepping away from a significant amount of responsibility – are you okay with this? You won’t be calling the shots anymore; you’ll be working for someone else who makes the decisions.

Get in touch

Considering selling your business and trying to decide if the sell and stay approach is right for you?

At The Melo, we have helped many business owners through the selling process. We know that no two businesses or business owners are the same. Let us use our expertise to devise the best exit for you, your employees, and your clients.

Email hello@melo.co.uk or call 0113 4656 111.