As mergers and acquisitions in the restoration industry continue, I’d like to share my own experiences as both a leader at an acquired company and then as a team member who helped onboard other newly acquired companies.

While getting used to their new realities, I saw a lot of the same struggles happen to a variety of owners. Although those acquiring companies in the restoration industry seem to put a lot of effort into retaining and engaging their new staff, including the former owners, I truly wonder how many of those owners spent the mental time needed to prepare for the changes they were about to experience. 

Many owners also have never worked for another “boss” or it’s been so long that they’ve lost touch with how it feels to think like an employee. This alone can cause serious disorientation for the former owner and confusion on the part of their previous employees. 

Below are some thoughts from someone in the industry who has been lucky enough to work with a lot of fabulous owners who have thought about or made the transition away from owning their companies.

Before the sale. 

The acquisition process is detailed and requires a lot of attention and effort. By the end, many owners become so focused on just getting through it that they may not think very carefully about their next step. 

Owners need to identify what they enjoy most in the business. Is it selling services, managing large projects, working through back-end problems, leading and coaching others?  

It is likely the new company will have different opportunities than the current company, so it’s important for owners to speak to the acquisition team about what realistic options are available. It’s fair for an owner to ask what the acquiring company sees as their role and for how long. They may find that the acquiring company only wants the owner to get their team through the change and then pursue their passions elsewhere.

What are they the boss of? 

Post-acquisition, owners will no longer be the boss of what they were previously. Sure, they might have similar duties, but they will now have a boss that they report to. If it has been a while since they were in this position, do they remember how to report to someone else? They also may not be the boss of people they managed for many years.  

Owners should work with the acquiring team to make sure everyone is navigating the changes together and with open communication. This is frequently as much of an emotional struggle for the previous owner as it is a reporting struggle. They don’t want to create confusion for their previous team and they too may now have a new reporting structure to figure out. If they mix in where they shouldn’t, the staff will be confused and it may affect their success.  

Having their company acquired puts an owner in the unique position of being a great coach to people who once reported to them and to those they now report to. Their years of experience with their team will help the acquiring company to continue to be successful.

There are more people now. 

For an owner whose company has been acquired, their stakeholder group has grown and not only do they have a boss, but they likely have colleagues at the same level of reporting structure as they are. Those colleagues may need information or ideas or feedback that the owner isn’t used to giving. It’s also likely that the owner won’t be able to just act on their ideas anymore without involving more people.  

For bosses who were used to calling the shots and having a staff who followed their guidance without question, they must now be ready for a colleague to raise their hand and want to discuss their suggestions. It is important for them to remember that a variety of opinions, approaches and diversity of thought is a huge benefit to a larger team. 

Owners should also keep in mind how their original team is moving forward. After the acquisition a lot of the owner’s time may be spent helping their previous team to acclimate. Some folks will be unhappy and some will be confused. They have relied on the owner in the past and will continue to do so. This isn’t a bad thing as long as the owner also supports new leaders that may have been identified and helps them start to build trust with the team.

Having a handle on the changes.

For an owner selling their company, they are likely selling something that is a part of them. This is hard and can cause a lot of mixed emotions and internal struggles. They built something that they invested in personally, emotionally, and financially…and now they’re selling it to someone else. It can be hard for them to disconnect, hand off their creation and then let someone else tinker with it.  

To this point, an owner’s identity has probably been tied up in their company to a large extent, so they need to spend time mentally preparing for the transition. It can be helpful for them to think about some of the most stressful times in their life and what they did to help them through those. Or if they know they need others to get them through the transition, it will be important for them to speak with others about what they are going through, as long as they can be trusted with this sensitive information. If the owner is someone who reflects internally, then scheduling some time for quiet reflection to identify what they are truly feeling and how to productively move forward can be helpful.

In conclusion. 

Starting, running and then selling a successful company is a huge achievement. Therefore, the amount of internal dedication an owner gives to thinking about their involvement in the next step should be just as big. It’s encouraged that they take the time early on in the acquisition and diligence process to really think about what they want so they will have a clear understanding of their own future. There will be a time in the process when it may be too late to have a productive conversation, causing them to end up feeling more lost than celebratory once the deal is done. Being proactive will help to ensure this doesn’t happen. 

When the transition is complete, the prior owner can still be a leader. Their people will need them to be. By preparing in advance, they will be in a good space to be able to do so.