Final Days Checklist for Selling a Sign Company

YOU’VE BEEN READING my column about selling my signshop for a year now. (You HAVE been reading them, right? If not, SOTT has them in a digital archive, so look them up!) Therefore, you’ve been privy to all of the best, most up-to-date and accurate information on how to deliberate on retirement and your next chapter, how to get the most you can for one of your most important assets, how to polish up how your business looks and operates, the best way to market your business, what pitfalls to avoid, and how to have a happy ending. Time to envision that first minute, hour, day, week of turning the proverbial keys over to your signshop’s new owner. Nuts and bolts time, people, let’s get to it!

I always like visualizing various scenarios, walking through them in my mind ahead of time, trying to foresee any issues, problems, thinking around corners, to be as fully prepared as possible. What follows is a way for you to envision the first days of transitioning your shop to a new owner.

Set the Right Tone on Day One

Think of how you would have liked to be treated when (if) you bought your shop. Personally welcome the new owner that first morning and plan a favorable introduction to your team. Bring donuts. Positively frame the transaction, portraying how the transition will benefit the entire company. Have a conversation with the new owner about communication with key clients and suppliers.

Have a Written Game Plan

You knew I was going to tell you to do this, right? Think about creating a “new owner’s manual” and what the buyer will need immediately. Passwords, logins, contact lists, employee lists, payroll and HR information, meeting schedules, lease agreements, insurance policies, equipment manuals and upcoming production deadlines. I created a series of “Cheat Sheets” for the new owner of my former shop, and they were invaluable in the first few weeks and months of the ownership transition. I also did a brain dump of all the things the new owner needs to know when he’s sitting in my chair. I organized the mass of data into the following categories: Employees, Vendors, Clients, Community Stakeholders, and My Specific Roles. I used those lists to train the new owner in an organized and thoughtful way. Also, you should remember to come up with a plan to account for the disbursement of funds for jobs in progress, outstanding accounts receivable and accounts payable after the sale takes place.

Make Thoughtful Introductions

When at all possible, try to personally introduce the new owner to the people who will be most important to them. For my company’s transition, the new owner and I sat down with each employee individually, and I was able to use my institutional memory and personal experience to give a thorough and meaningful description of who the person is, how long they’ve been working with us, what they do, why they are invaluable, and basically humanize them to the new owner instead of just being a random name on a sheet of paper. At that same meeting, I was able to tell a little about the new owner to the employee, mentioning those traits I thought that person would find most beneficial and enjoyable to know. During this doubtless stressful time, most employees left feeling more positive, sensing that the new owner “sees” them for the value they bring to the organization as well as finding out more about the new owner himself. I was told by the new owner and by my former employees separately that this was a crucially valuable meeting for them.

Do a Thorough Walk-Through

We are in the manufacturing industry, so operations are front and center in our world. It’s possible the new owner might not be familiar with how things run at your shop, so take some time, walk around, explain about equipment and processes, and begin familiarization. Demonstrate the MIS software your shop uses to quote, enter and process orders, a little at a time (you don’t want them to run screaming for the hills after two hours of being lectured to).

Be a Backseat Driver

Let the new owner take the wheel and drive. You can look over their shoulder and alert them when they are getting off track. Have a training plan where you can introduce something new each day, allowing them to absorb and feel more comfortable with each task, and build on their knowledge. Set mutually acceptable boundaries that each of you feels comfortable with. And don’t forget to ask what they need, what would help them, what you can do to make the transition better. Remember, be brave!

Wean Yourself Slowly but Surely

With the new owner’s permission, try to spend less and less time each week. Always make sure you are accessible so they can reach you with any questions by phone, text or email. Keep in mind that you are rooting for their success! This should be an organic and natural process. Your former employees will see less and less of you, while relying more and more on the new owner — this is the desired effect! Some sellers want a big “do” when they leave, with parties, speeches, events, newspaper articles, the works! If you are that person, try to work with the new owner so everyone is happy with the result. Others, like me for instance, want this to be a “nothing sandwich,” to minimize the disruption to everyone’s lives and schedules. Whichever works for both of you, try to be respectful of your employees’ perspectives.

As a new favorite musical artist Billy Strings says in one of his songs, “This is the beginning of the end.” You are still physically at your former shop, and it might be difficult to go through these steps without some sadness or “ick.” Keep in mind that this too shall pass — it’s only a very temporary situation if you don’t plan to stay employed by the new owner, and soon, so soon, it will be the “you” show all the time!

Preparing for that big day, that first morning you can wake up naturally, with no alarm, and the hours stretch out in front of you to be filled with nothing but your heart’s desire, takes much forethought and planning. You probably know me well enough by now that I created a Transition Checklist, which I’ll be happy to share with you. Just email me at paula@paulafargoconsulting.com.

I’m rooting for you to be living your best life!