You've Sold Your Company. What Are You Going To Do Next?

We frequently receive this question from CEOs: What do you do after selling your company?

This is an essential consideration if you are thinking about selling your business. After all, you have invested a significant amount of time and energy into bringing your vision to life.

So, what will you do next?

During the sales process, buyers will want to know what the CEO plans to do after the sale. Are you planning to stay on after the transaction? Do you want to leave the company? If so, why? Some acquirers may encourage you to depart, while others may prefer you to stay on. In fact, certain buyers might want you to remain for a specified period post-acquisition to ensure a smooth transition for the company. Clarifying your intentions with buyers is crucial, as it can affect the valuation and structure of the deal.

While it may seem like your choices are limited to leaving or staying, there are actually many options available to you. If you are uncertain about what you want to do after the acquisition, here are some ideas to consider:

1. Stay with the Acquiring Company. You could join the acquiring company as a member of the management team or continue as the leader of the acquired business. Many find it appealing to help build the business even after the sale. This option could allow you to enjoy financial stability while being part of something larger. Some acquirers are particularly interested in retaining key employees and offering them growth opportunities.

2. Unplug and Relax. If your ultimate goal is to take a break, this can be a valid way to transition after selling your company. Taking time off can be refreshing and worthwhile.

3. Start Something New. If you have a new idea or wish to retain part of your existing company’s pipeline through an asset sale, this could be a compelling direction. We often observe scenarios where a new technology has been developed but is not of interest to the acquiring company. Transitioning out through this method allows you to have an exciting new venture while still ensuring continuity.

4. Take a Sabbatical. Leaving the business you’ve built can be challenging. Stepping away from the industry to explore something entirely different can be a great option, especially for those who have been entrenched in the fast-paced tech market. A sabbatical can offer you a chance to regroup and figure out your next steps at your own pace.

5. Reinvest. Consider investing as an angel investor, venture capitalist, or through a private equity firm. With the newfound wealth from selling your business, you might enjoy the opportunity to invest in other technology assets, keeping you engaged as you contemplate your next move.

6. Prepare for Potential Re-acquisition. It’s important to recognize that over 50% of acquisitions do not meet the expectations of either the buyer or seller. This reality reinforces the importance of qualifying your buyers to understand how they plan to integrate your company post-acquisition.

Many CEOs express uncertainty about what they would do after selling their business, and they may hesitate to sell out of fear that they would have nothing to occupy their time. However, there is a risk in waiting; you may miss the opportunity to sell when market conditions are favorable.

Ultimately, what will you do after you sell your company? You might choose from the options provided or consider something entirely different. Whatever your choice, your exit from the market can empower you to embark on your next adventure, whether that involves relaxation or launching a new business.