Ep. 68 — Why Selling to an Insider Might Be Your Best Business Move Yet

Welcome to the "Show Me The Way" podcast with David Seitter

In this episode of "Show Me the Way," Dave and Casey Coffman, Founder of Sandler Training by Coffman Group, to discuss the journey of business succession planning, particularly focusing on Casey's experience of selling his business to his long-time partner. This episode is perfect for business owners considering their own succession plans, as it provides invaluable lessons on the intricacies of business exits, the emotional and psychological aspects of selling a business, and the personal evolution that follows.

Ep. 68 — Why Selling to an Insider Might Be Your Best Business Move Yet

Casey Coffman begins by recounting his upbringing in Missouri and his early educational endeavors, which set the stage for a career in personal computer hardware. His experiences in the dynamic environment of Silicon Valley during the tech boom highlight the unpredictability and excitement of the technology sector. Casey’s career eventually led him to become a crucial part of the Sandler sales training franchise, where he spent the majority of his working life.

The Decision to Sell a Business

One of the most compelling parts of Casey’s story is his decision to sell his company to his long-time partner, Eric, in what Dave calls an "insider sale." Casey’s thought process emphasizes the importance of trust and appreciation for the contributions of valued employees. He candidly shares how this decision was not just about exiting the business, but also about rewarding loyalty and ensuring a smooth transition for the company he helped build.

Lessons Learned from Insider Sale of a Business

Casey’s approach to selling his business reveals crucial lessons for anyone considering a similar path. He stresses the importance of understanding the true valuation of your business rather than relying solely on personal assumptions. Engaging professionals like accountants and business advisors helped Casey overcome his initial misconceptions about the saleability and value of his company. This process ultimately led to a successful transition funded through an SBA loan, which was a pleasant surprise for Casey.

Life After Selling

After a year out of ownership, Casey reflects on the challenges and opportunities of transitioning out of a long-term business role. He stresses the importance of finding new purposes and passions after leaving a business and recognizes the difficulty many people face in defining who they are beyond their professional identity. Casey’s journey highlights the need for reflection and the “rewiring” process necessary to embrace a new phase of life, fostering continued personal growth and fulfillment.

Key Takeaways for Future Business Exits

For those considering selling their business, Casey offers insightful advice:

1. Prepare Yourself Mentally: Understand your motivations for selling and be sincere in wanting to sell, not just curious about the idea.
2. Seek Professional Guidance: Engage with experts to gain clarity on your business’s true value and the realistic opportunities available for exit.
3. Build Trust in the Process: Whether selling to an insider or a third party, trust is crucial in ensuring a smooth transition.
4. Rewire, Don’t Retire: Post-sale life is an opportunity to explore new passions and contributions; it’s not the end, but a pivot to a new beginning.

 

Casey’s journey is a compelling testament to the complexity and rewards of business succession planning. His thoughtful approach to both his personal and professional life provides valuable lessons for anyone looking to make a similar transition. As we continue to explore different facets of business success and exit strategies, Casey's story remains a definitive guide for navigating the path ahead.

 

 

 

To reach out to Dave for advice or consultation, please visit www.davidseitter.com or email him at dseitter4@gmail.com

 

Disclosure

This podcast is provided for educational purposes. It does not constitute legal advice and is not intended to establish an attorney-client relationship. The recommendations contained in this podcast are not necessarily appropriate for every individual or business. In determining the best course of action, business owners should consult with an attorney on their distinct circumstances.