BizSugar.com › Strategy › When is the Best Time to Sell A Business?

This is a story with an unhappy ending. I heard this story from employees who worked for a company many years ago. I knew the company well and as far as I know, this is the truth.

The owner (Jerry) had all the right credentials: undergraduate and law degrees from prestigious colleges, and a big ego. He had bought a small company with his brother and built it into a multi-million dollar company over many years. We’ll call it Smithco. The brothers built a company with a sterling reputation and many prestigious customers. Twenty years go by and they wanted to take some money off the table. A giant international player wanted to add Smithco to their portfolio to “create synergy” with similar type products of another subsidiary. One brother would leave to head up the leading industry trade association; Jerry got a 5 year contract as CEO of the business, now a wholly owned subsidiary.