How to find and maintain purpose after an exit
You sit at your desk as sunlight pours in the windows. You unconsciously hunch toward the computer screen and remind yourself to breathe.
Twenty minutes ago, you got word from the buyer on the other end of the line: “OK, wire sent.” Now you’re refreshing the browser window every minute or so, waiting for the number in your bank account to skyrocket.
Click. There it is!
You unlock your phone and jab at the number for your investment bank’s deal lead. When he picks up, you say, “Got it, it went through. Thank you so much.”
The tension melts away. You feel a jumble of emotions now that the deal is closed, the money’s in your bank, and your business is in new hands. Joy is at the forefront, but it’s tinged with a bit of sadness and a hint of apprehension.
You can feel the page turning. Here’s how to make sure this feels like a new beginning and not the end of anything.
Take the win
First order of business: celebrate! 🍾
You spent considerable time, effort, and money to shepherd the sale of your business. Now that it’s over, you should take stock of what you achieved.
Many sale processes fall apart, but you created something enduring that made others take notice and fight for the opportunity to go all the way. Congratulations!
Take the time
Spend a period reflecting on your journey from early entrepreneurship through mature leadership. It’s usually not necessary to dive into a new venture right away, so consider traveling, immersing yourself in family life, or dedicating an extra hour a day to a new or dormant hobby.
Making space for introspection may help you see the present as the natural next stage along your path. This mindset can combat some of the negative emotions that a business sale might bring, such as loss or purposelessness.
Even if you’re staying on at your company for a while, consider taking a beat to think about how far you’ve come and what you’d like the future to hold. At least get a vacation on the books—you’ve earned it!
Take the opportunity
Once you’ve figured out how you want to spend your time, the real fun can begin!
Want to pay forward the lessons you’ve learned? Join a mentorship program or take a promising leader from your company under your wing for both informal and structured sessions.
Love playing piano but never mastered that tricky sonata? Hire the best teacher in your area and carve out 30 minutes for practice each day.
Excited by a new business idea? Combine your long experience, deep list of connections, and new prosperity into a force to be reckoned with.
Above all, think about your options as things you get to do—this will help you take ownership of this stage of your life.
Take the money
You’ll need a firm hand and professional help to manage your new liquidity wisely. Structuring your finances to suit your lifestyle and goals will take a team that includes an accredited wealth advisor, certified public accountant, and estate attorney.
It’s best to always consider advice this team gives, but there are a few basic points to keep in mind:
- Pause before making big decisions. Resist the urge to make large, irreversible financial moves until you’ve emotionally processed the transition.
- Secure a cash reserve. Keep an adequate amount of money in safe, liquid accounts—such as Treasury bills, money market funds, or a high-yield savings account—to cover near-term expenses.
- Update your estate plan. Use trusts, gifting strategies, or family offices to ensure your wealth benefits heirs according to your wishes while minimizing estate taxes.
- Diversify your portfolio. Spread risk across stocks, bonds, private equity, and alternative investments.
Many people in this position also hire philanthropic advisors to help with sustainable giving. These professionals help structure charitable contributions in tax-advantaged ways, such as through donor-advised funds or private foundations. The possibilities are endless, from angel investing in promising startups to donating to local or national organizations or schools that laid the foundation for your success.
Take the meeting
There’s no use pretending your life hasn’t changed post-transaction—it absolutely has. This could mean that some relationships and forms of community start to fade away as you stop seeing many of the same people every day.
But there are plenty of chances to build new bonds. For example, former business owners are often in demand as members of corporate or charity boards, and mentorship organizations always need experienced leaders to nurture younger talent.
There are also opportunities to forge connections with people who’ve been through the same transition from owner to emeritus. Not many people can understand the exact mix of feelings you’re experiencing, so relish any chance you get to interact with former owners.
You can keep connected to experienced entrepreneurs by participating in the Class VI Community. We host private events tailored to business leaders at all stages, and we love making introductions and watching rewarding relationships flourish.
Stay supported, stay inspired—stay active in the Community!