How I unexpectedly negotiated to sell my company

What can you say about the whole sale process?

It’s been pretty difficult. 

What? Why?

Just a long process. The conversations between myself and the representative of the purchasing company were pretty straightforward and favourable, but once the lawyers became involved it was just difficult and dragged out. We missed a couple of targets in the deal, either because I wasn’t comfortable with the information being provided, or otherwise.

Wow, did you ever think about walking away?

Yeah, at one point I was agreed in principle but went back to the deal. We agreed on some more favourable terms. So it’s all sorted.

How did this whole thing start, anyway?

That was pretty difficult. These guys contacted me and suggested I go to a conference in the United States where we share projects and knowledge and so on. I sent one of my first employees along, and at that point I wasn’t seriously thinking about anything. At the last minute, I thought, I’ll just keep my mentality open.

So he went over to this conference and reported very favourably. We had discussions over about a month or so, and I thought they sounded like a good company. After a while it was obvious it was going to be a good deal for everyone.

Breaking it to the staff would have been hard. How did you do that?

I simply told it to the staff in that light. There was an opportunity for us to be bought out, although I didn’t present it that way. I emphasised the fact we were changing courses, partnering up with this company, and so everyone felt comfortable with it. I made sure there’d be no changes to contracts or conditions and so on.

They were worried about keeping jobs, of course. They wanted to know if their pay was going to change and so on – natural things. So you have to make it clear they’ll be working for the same people.

What’s the best way to approach that?

I didn’t want them to feel like they were being told what to do by this big company, so that sort of relieved some concerns.

But most of all, I had to present it as an opportunity. We’re going to have a much broader client base to pick and choose from, so that’s a bigger opportunity for these guys.

So for any other entrepreneur going through this, what advice would you give them?

Know what you want. If you’ve been approached, that needs to mean that you hold some of the power in the negotiations, because you’ve been approached for a reason. They need you more than you need them if your company is going well and you’ve been approached. Try not to be overawed. And know what you want to get out of it.