The study guide for "We're Goin' For The Gold" with Tracy Myers of the Advertising Arts College in San Diego, California and Bob Orenstein with International Wine Accessories in Dallas, Texas.

The Case Study Guide

last update: MAY 2007

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try to prevent a brain drain

Tracy stayed on with the new ownership to help smooth the transition for them and her employees.

Provide Buyers Continuity

You recognized long before you thought about selling your business that your most important asset was the team you had put together. Every successful business owes its success to some extent or another to the people of the organization. And you are the most critical employee of all. Don't be surprised if the buyer wants an employment contract as part of "the deal." What this means is that you may have to exit 1-3 years before you really want to exit!

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Key Ideas of this episode


1.		Think About Selling From Day One

2.		Take Charge Of Your Exit

3.		Hire Experts

4.		Calculate Your EBITDA

5.		Build Goodwill

6.		Play Hardball

7.		Provide Buyers Continuity

8.		Deliver The Numbers

9.		Lean On Your CPA

10.		Know When To Let Go

Topic for Discussion: When should you tell your employees that you are selling the company?

Answer: Not until the deal is done. There may be some exceptions -- some very key employees that you feel you must keep "in the loop." But this should be kept to an absolute minimum.

Topic for Discussion: What will be the effect on your rank-and-file if you tell them you are selling the company and then the deal falls through?

Answer: They'll probably wonder what you did wrong or what they don't know. Better to keep quiet until you have a signed letter of intent. Then, like Tracy, explain to them that for you, for the company, and for them, this is a good thing.

You think about it: What employees are so critical to the operation that they should be offered a bonus to stay with the new ownership?

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