Jim Nooney enjoyed a successful career as a business owner. But when the time came to retire, he realized he knew much less about selling a business than he did about running one.
Jim’s company, Nooney Controls, began as a representative for several industrial valve manufacturers but eventually grew to offer its own customized valve automation solutions to service the energy sector. Jim had enjoyed running the business for decades, and he wanted to ensure that his exit would be just as satisfying as the rest of his career.
Jim and his partners knew they needed a very special buyer who would maintain the integrity of the company’s values and culture and take care of its employees. Trelus provided the insight they needed to orchestrate a deal that left everyone happy.
Refusing to Settle
Jim started considering his exit at a time when Nooney Controls was thriving. “We peaked at about $30 million in sales and about 35 employees, and I started talking to my two minority partners about the possibility of selling the business,” he says. They agreed it was time to explore the option of selling. It seemed like everything was in place; he had a strong business and strong buy-in from his partners. But in 2017-18 the business saw a sizable decline in revenue in large part due to loss of a part of their business with 2 major OEMs. Nonetheless, they felt they had a good recovery plan and that the business had ”good bones” and that the right buyer would understand that. They decided to go forward in spite of down turn.
Now, he just needed a top-notch buyer.
Jim wanted the best deal possible for his company and employees. “We’re not going to do this if it’s not very clear that it’s going to go well, and that it’s a sound decision, and that we can find the right buyer,” he decided. If, at any step along the way, he’d have to compromise on important priorities, he would simply table the idea of selling and try again later.
Jim considered what those top priorities would be. Yes, he had a price range in mind, but he also wanted to preserve the company’s culture, retain quality employees, and hand Nooney Controls to an owner who would not make immediate changes.
The problem? Jim didn’t know how to find such a buyer. He had no previous experience selling a business.
Finding a Direction
Jim started by asking a close friend, a CPA, for advice. His friend connected him with a couple of private equity firms. After talking with them, Jim decided that private equity was not the right direction for this sale. He didn’t think a PE firm’s goals and methods would fit his vision for the company’s future.
Luckily, Jim had connections with the C12 Business Forums, which led him to meeting Martin Myers, founder of Trelus.
At first, Jim didn’t grasp exactly what Trelus was. He assumed it was another investment banking firm. He soon came to understand that Trelus was an exit navigation platform—a platform offering educational resources and “roadmaps” for those planning to sell a business. Importantly, Trelus offered business owners unbiased information, as opposed to many other online resources and advisers.
Jim started his journey with Trelus by taking a survey that evaluated his readiness to sell. It helped him gain confidence that he was making the right decision. From the start, he saw that Trelus’ philosophy of selling aligned with his own: that is, to find exactly the right buyer.
Jim remembers Martin Myers explaining to him, “This is your business. You don’t have to sell it. You have to be comfortable [with the buyer].” In other words, Jim needed to recognize his power as the seller.
This was refreshing advice. The sales process could sometimes feel the other way around: as if buyers held all the power. With Martin Myers’ help, Jim developed a “pitch” for Nooney Controls that highlighted the business’s unique value. The process of writing a pitch for the company actually helped him clarify what kind of buyer would best fit the culture.
A Methodical Process
Trelus’ methodical process helped Jim craft a better business sale than if he had rushed through the process. He’d initially assumed that selling his business would take 3-4 months. As he worked through the steps outlined on the Trelus platform, that timeframe stretched into a year. In retrospect, Jim is glad it did.
“A lot of things came to light, with my partners, with the business,” during the long sales process, he remembers. It helped him and his partners focus on their goals and ensure that the business was healthy and ready for sale.
Jim credits Trelus’ rigorous process for helping them eventually find the right buyer. In the end, everyone came out happy on the other side of the deal.
Ensuring Long-Term Satisfaction
Since exiting Nooney Controls, Jim has met other former business owners who did not go through a similarly rigorous exit process. Often enough, they regret aspects of their exit.
He understands why it’s so easy to wind up with an unsatisfactory sale. “It’s a dizzying process,” he says. “There are so many different perspectives and angles to come at, that it’s confusing.” When business owners try to go it alone, they often get overwhelmed. “I wish I’d known” is a frequent refrain he hears from disappointed former owners.
“There’s no better method to navigate [a business sale] than to talk to someone who’s been through it,” he says. He appreciates that the information on the Trelus platform is based on the lived experiences of real business owners who have gone through an exit firsthand.
Advice to Exiting Owners
Jim has a word of advice to business owners who are thinking of selling—particularly those who plan to jump right into retirement, like he did:
“If you’re going to do that, you’d better have a plan.”
It’s advice that countless business owners can attest to. The sale is important, but so is life after the sale. It’s important to know how you will use your time and energy in retirement. The idea of resting for a year and “taking it as it comes” may sound tempting while you’re in the middle of the deal. But a few months into retirement, many former owners struggle with the empty calendar stretching before them.
Jim suggests talking to family, friends, mentors, and others who know you well and can help you decide how to manage life post-exit.
Exit Well with Trelus
Not sure if you’re ready to exit? Uncertain what post-exit life would look like? Or maybe you “don’t know what you don’t know” about exiting a business.
Trelus can help. Our platform educates you on the sales process and helps you plan for every step, from first thought to final signature and beyond. Evaluations, resources, and referrals to trusted advisers will help you assess your readiness, the readiness of your business, your values going into the sale, what you want retirement to look like, and more.
Join Trelus today to get started.
