Do you have a plan to protect your agency and team in case of disease, injury, or death?? What would you do if your partner passed away? What if you were hurt or sick and unable to work? How much of your agency is reliant upon you for the day-to-day operations? As firm owners, we often think of our exit strategy, but it’s also essential to prepare for the unexpected.
In today’s episode, we’ll cover:
Today I sat down for an interesting chat with Eric Meyers, former CEO of a $40 million digital marketing firm. Back then, Eric found himself trying to browse a pending merger along with a transfer of ownership after the sudden death of his agency’s creator. He’s here to discuss what he discovered through the procedure and what you can do to safeguard your company from the unforeseen.
2 Things to Protect Your Agency from the Unforeseen
Take a minute to believe about what your agency’s future looks like. Where do you wish to remain in 5, 10, or twenty years? Is that future still possible in case of an abrupt health problem or injury of a company leader? What about the death of your business partner? These things aren’t enjoyable to believe about, but the truth is when you own a business you need to think about and prepare for the unexpected.
When Eric took the role of CEO at a firm, he never ever anticipated the creator would be involved in a tragic mishap after only three months on the job, but that’s what occurred. As an outcome, the owner’s family took control of the agency. From there, a pending merger fell apart and the company went up for sale within six months. How can you safeguard your firm from unforeseen modifications?
The Key to Safeguarding Your Company’s Acquisition
One of the major problems at Eric’s company is the acquisition fell through at the last minute. This could have been avoided by a rock-solid Letter of Intent. A Letter of Intent assists all parties comprehend what they are getting out of the purchase of the agency. Eric says you shouldn’t assume you can do it by yourself. You require someone guiding the process and helping you navigate the unidentified. It’s even a great idea to make sure you have legal representation to examine documentation and contracts.
Another method to secure yourself is to set up an escrow account with the Letter of Intent. The quantity in escrow depends on the amount of the sale. Then, if whatever prior to the Letter of Intent ends up being true and one of the parties backs out, the other celebration gets financial settlement.
Do not forget, a firm sale is not the time to decrease. You require to keep your foot on the gas. You require to master maintenance existing customers and continue to fill your pipeline. That method, in the occasion the sale falls through, your agency is in a great position to thrive.
No one likes to think of the worst-case situation, but as a company owner, you have no choice. When you make the effort to make certain you have the needed precautions in place, you’re investing in your agency’s future.
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