M & A SERIES CONT .
The Human
Side Of M & A
What Happens Next ?
PART 3
How much you make from selling your MSP business is important , but it ’ s not everything . For many sellers , something else takes precedence : What happens next ? To me ? To my staff ?
You should anticipate the impact of a sale on your life , says Frank DeBenedetto , who sold his MSP business to Evergreen Services Group and now heads the Kaseya M & A Concierge program . Going into a negotiation , have a clear idea of what comes next .
“ It ’ s not just the dollars and cents that greatly impact the decision-making when looking to sell ,” DeBenedetto says . “ Money is usually secondary to the structure of the deal because most people aren ’ t going to sell if they ’ re going to have to answer the phones [ as an employee ] from now on .”
Selling could mean having to find a different line of work . “ You will likely have signed a non-compete agreement with the buyer that will last three to five years ,” says ChangePoint Advisors President Sarah O ’ Connell . “ This requires that you think about what you love to do , what energizes you , and what strengths you want to use in a new way .” She recommends working with a retirement or career coach .
PE firm Evergreen , which has made dozens of acquisitions , created a founders club to bring sellers together , says Ramsey
Sahyoun , co-founder . “ It ’ s been really great for these founders to have other people who have been in their shoes to talk to .”
Breaking The News
Owners also need to think about the impact of a sale on their teams . For instance , when do you tell them you plan to sell ?
O ’ Connell advises waiting as long as possible . If you tell them too early , she says , you may not be able to answer their questions about their future roles . Some will get itchy to leave .
DeBenedetto recommends telling employees within 30 days after the sale , around the same time you should tell customers . Don ’ t leave it up to employees to tell customers because the right message may not get across , he adds .
Break the news to the staff in person , says O ’ Connell . If the team is geographically dispersed , hold a virtual meeting . “ It ’ s important to show employees that you care about them . Change can be difficult for people , and you want to continue to foster a positive workplace culture throughout the transition .”
If you think through what ’ s ahead , and inform staff and customers in a way that reassures them , everyone involved , including the buyer , will feel good about the transaction .
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