Adam Sonnhalter of Maximum Value Partners (MVP) discusses a true story of one of their small business clients where two brother-n-laws who owned a business together were not getting along. As business coaches, Adam and Jack Mencini of MVP, often have clients whose co-leadership with family members is no longer working effectively.
During the Dirty Secrets of Small Business radio show, Adam and Jack review a past client situation where the two business owners engaged MVP to evaluate the company to help sell it. Once evaluated, it became evident that the business had no value without the leadership of the brothers-n-law. The two men were key to the operations and their 23 employees who needed them to be actively involved. Jack and Adam didn’t mince words when they told them that they both couldn’t walk away and have the business still be valuable. They needed coaching and direction to make changes and have the business run more independently.
MVP was able to help get the owners out of the intense the day to day operations over the next couple years even though there was tremendous tension between the two of them. The process was to train the employees to ultimately run the operations of the business. This took diligence and MVP’s coaching to make the necessary changes.
After several years, the owners decided to execute their “shot gun provision.” The shot gun provision is that when someone pulls the trigger one party can make an offer to the other partner and if the one partner says no, the other partner is able to turn around and execute the offer.
The owner (who left the business) started to successfully pursue other interests.
Five years later, the owner who remained got an offer from a competitor to buy his business. He wasn’t really looking to sell, but with a great deal on the table he was able to sell and walk away. Because he was running the company well and there was value with the company not having to totally rely on him anymore, he was in a great situation to sell the company.
If you are in a similar situation or are asking yourself how could you ever transition or sell your business if you are doing all the heavy lifting, contact MVP to understand what changes can be made in your leadership style and your business operations that can make a positive future in your business. Contact firstname.lastname@example.org.