Seeking Advice: Navigating "Operator" conversation with Seller
September 26, 2024
by a searcher in Houston, TX, USA
Original plan was to buy the business, promote lead/key employee as manager of the day to day while still learning and overseeing the business and maintaining W2 for ~6 months, then exit W2 and oversee business strategy/growth. Key employee operates business when owner is on vacation and has been with the business 12 of 15 years in business.
I would work remotely at W2 from the business location twice a week.
Discussed this plan with seller and he is nervous of this plan to the point of killing the deal.
How would you approach further conversations with the seller knowing I want to maintain W2 for ~6 months due to financial and personal reasons?
in Houston, TX, USA
One entry to that might be the "labeling" technique, where you say something like "it seems like you feel..." (Bill can hold things together for a few weeks but not a few months | that I'm not sufficiently committed to the success of the company | that this company requires a firm hand on the tiller at all times | any plausible thing that might be the issue). If you guess correctly that is likely to open the conversation. If you guess incorrectly, the chances are just as good that the seller will feel compelled to correct you -- "no, no, it's not that, it's..." (some other thing). Either way you stand a decent chance of getting the issue out in the open where it can be considered and addressed.
Best wishes!
from Duke University in New York, NY, USA