As a small business, we work with a lot of other local small businesses. For many owners, exiting (selling) is essentially their retirement plan. I fully believe owners should be able to exit their business at a healthy price.

But how they exit matters.

Last week I recieved an email from a business we’ve partnered with for well over a decade. TThey handle both my personal and business accounts. I noticed that the email said, “A [national brand] company.”

Huh?

Well, this business had sold to a national company without notifying anyone.¹ Nothing on their blog, nothing on their social. media, no email announcements. Just that small change in their email signature and attachments. I suspect this was required because the industry is regulated, and they need to disclose who ultimately provides the product.

The new owners had a small press release where they quote the original owner/founder:

“Our clients were at the forefront of our decision to join [national brand] due to today’s ever changing insurance environment,” says [former owner] Principal and Founder of [local small business]. “… and we are excited to bring world-class resources and expertise with our same local support to the business-owners, non-profits and individuals we serve.”

If clients like me were truly at the forefront, we would have been informed about the acquisition. It wouldn’t have been hidden.

M&A deals are complicated, I get that. It’s important for owners to receive fair value for what they’ve built and the risks they’ve taken. But these “thief-in-the-night” acquisitions leave a bad taste in my mouth.

I have no timeline for exiting my own firms, but when that day comes, I hope I am proud enough of the transition to celebrate it with my clients and employees, rather than hide it

1. As far as I can tell. ↩︎