underlying elements , and the sale of the business became the tipping point . Selling a business is one of the most emotionally challenging journeys most CEOs will ever go through .
A lot of them end up in divorce . I would say the divorce rate is higher than average . The financial gain can often be the triggering point for not having addressed underlying issues within the marriage such that now the financial gain becomes a path out for either of the two parties .
MSP Success : Why Are Owners So Dismissive Of The Potential Post-Sale Depression ?
Warren : Most CEOs are entrepreneurs . They ’ ve handled a lot of adversity and figured out a way through it , so they have a high degree of confidence in their ability to solve problems . And [ the emotional fallout ] doesn ’ t seem like an insurmountable problem to them . They kind of take it in stride : “ Hey , I ’ ll figure this out just like I ’ ve figured out everything else .” The reality of what they ’ ve overcome has been predominantly external in growing a business , and the sell-side blues , if you want to call it that , is a very internal thing that you have to process . You see similar patterns with military personnel that come back from conflict , and even in the sports arena where people have great successes .
MSP Success : How Should Sellers Prepare Themselves To Avoid Emotional Fallout ?
Warren : The biggest thing is to have a perspective that this is a transition into the next thing . People say , “ I ’ ve always wanted to golf .” “ I want to sail around the world .” Activities don ’ t provide meaning and purpose . What gives you meaning and purpose is aligned with what you ’ re currently doing . A lot of owners got into the business because they like meeting the needs of clients and have a skillset that lets them bring value to the customer .
Realize this is not a finish line ; this is a transition to enable [ you ] to be more purposeful , and more focused and intentional . Maybe you ’ d make a great consultant ; come back as a peer group leader and give back to the next generation of MSP owners . For some , it ’ s about writing a book about their experiences ; others may want to go into politics .
MSP Success : Are There Support Groups ?
Warren : There is a support group called IT Nation Grow , created by managed services veteran Arlin Sorensen and managed by Scott Scrogin . I encourage my sellers to interact with them . It ’ s a place to go to help prepare you for post-sales emotions in a proactive way .
Pedro Pereira is a writer in New Hampshire who has covered the IT channel for two decades . Pedro has worked for a variety of media companies , including Ziff Davis , CMP Media , The Nielsen Company , and daily newspapers .
Next Steps For Sellers : Have A Plan
Mike Fowler is one of the fortunate ones . After selling his MSP business , he ’ s been enjoying his “ unemployed by choice ” status . But most sellers have a vastly different experience , struggling with identity crises and remorse .
“ Yes , there is a sense of loss of identity ,” says Paul Cissel , referring to the aftermath of selling his MSP business . Currently , he is CEO of Growth Caddie and M & A Expert in Residence for TMT . But he remembers the empty feeling after selling his MSP .
“ Running a company , you are the big dog . Playing golf with retired business owners , the pecking order changes based upon ability , and I am not good at golf ,” Cissel jokes .
Estimates indicate 70 % to 90 % of sellers grapple with remorse and depression post-sale . Fowler is not one of them . “ I ’ ve had a fairytale ending but not all others have been so lucky .”
During the process of selling , Fowler says owners should prepare for the aftermath . Even if they stay on post-sale , they have to accept they are no longer in charge .
Cissel says one of the biggest challenges is trying to stay busy . “ You are used to getting hundreds of emails a day , and suddenly you are not . You have a lot of time .”
Currently he helps MSP owners accelerate their business value and reap the benefits . “ I really enjoy helping owners that have not been through an exit event to plan what ’ s next .”
Fowler , who is considering his next steps , admits he misses the rush . “ I really miss the people , the challenges , and celebrating our successes together . For so long , my job was my identity , so I ’ d be lying if I said I didn ’ t miss it .” But on the flip side , he says , “ I do enjoy not having back-to-back meetings all day and occasionally sleeping in .”
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