How to Successfully Position Your Business for Post-acquisition Integration 

As a seasoned mergers and acquisitions expert, I’ve had the privilege of helping countless women business owners plan and execute successful exit strategies. This experience has provided me with an intimate understanding of the emotional journey that accompanies such a transition – the exhilaration, the uncertainty, and ultimately, the satisfaction of seeing a new chapter begin to unfold.

Over the past year, I’ve made my own transition to a new phase of life, most recently deciding to follow my heart and move to Hawaii. Like many of my clients who decide to leave their businesses,  I made a decision to change my life and live in paradise.  I am now settled into a temporary rental, but on an island, so nothing is far from the beach—my happy place.

Finding peace in the transition

Ralph Waldo Emerson said, “Nothing can bring you peace but yourself.” 

For many women over 40, the decision to exit an entrepreneurial venture is not taken lightly. It often represents the culmination of years, perhaps even decades, of passion, hard work, and resilience. As such, the period following the sale or integration of your business can be accompanied by a complex mix of emotions. It’s an end, yes, but also a beginning.

All transitions take time, and finding peace can mean many different things to different people.  

It’s difficult to move from everything you know and love to a whole new you without sitting in it and getting to know yourself again.  There are days when I look in the mirror, and I know the soul looking back at me is me.  I look peaceful, my eyes are peaceful.  Then there are the days when I look and ask myself, “Who the hell is that?”  But I do think I found inner peace with who I am now.  I was a different person then, I grew, and I continue to, now just on a different path.

To find peace in my transition, I followed a few simple steps:

The first is acceptance. It’s perfectly normal to experience a sense of loss when you exit your business. After all, your business likely consumed a significant portion of your life and defined part of your identity. But remember, the end of your business doesn’t equate to the end of your journey. It’s simply the close of one chapter, making way for a new one to begin. This acceptance is the key to unlocking the future that awaits you.

Next, allow yourself time to reflect. After the whirlwind of negotiations and paperwork, take a moment to step back. Revisit your achievements and the challenges you overcame. You’ve proven your ability to create, build, and exit a successful venture. This is an accomplishment worth celebrating. Reflecting provides closure and helps identify the skills and experiences you can carry forward.

Last, take time to reassess your goals and desires. Whether you’re considering another entrepreneurial endeavor, planning to join a corporate role, or even eyeing retirement, this is your chance to realign your priorities. What are the things that truly matter to you now?

Inner peace 

Finding peace inside is also a journey.  It takes awareness and work.  So I committed to doing that during this transition.  To live a more fulfilling and meaningful life in my new surroundings. 

They say “inner peace” is about the contentment of accepting yourself as you are, a sense of calm no matter what comes your way.  Alignment to our own beliefs and values to live that way.  Being aware of our thoughts and emotions.  Really tuning in to who you are, including imperfections, and be OK with it.  I suppose a good way to put it is a sense of inner harmony.  

Transition is a work in progress

They say that the phrase “Flight of the Phoenix” has come to symbolize the concept of rebirth or renewal.  Basically coming alive again but being different.  Rising from the ashes when faced with a seemingly impossible situation and emerging more vital, more resilient and self-aware as a result.  

Reinventing yourself after a business exit can be a daunting prospect. Yet, it’s also an opportunity for exploration. If you’ve always harbored a passion for painting, now might be the time to pick up that brush. Or perhaps you’ve long dreamed of contributing to a social cause – why not explore the non-profit sector? The options are limitless, and the choice is yours.

A crucial aspect often overlooked during this transition is self-care. Amidst the excitement of exploring new opportunities, remember to care for your physical and emotional well-being. Regular exercise, a healthy diet, and adequate sleep can work wonders in helping you maintain balance during this period of change.

Don’t hesitate to seek support. This could be in the form of a mentor, a coach, or a group of like-minded individuals going through similar transitions. Sharing experiences, fears, and hopes can be incredibly therapeutic. And remember, professional help is always available should you need guidance in this new phase.

Finally, embrace the uncertainty. It’s natural to feel apprehensive about the unknown. However, remember that this uncertainty also comes with endless possibilities. The future is a blank canvas, and you hold the brush.

The journey is the destination

For me personally, this year of transformation was a year of growth too.  I faced many fears, some I didn’t even know existed but showed up right in front of me.  Through it all, I learned that no obstacle is insurmountable, even in the most difficult of circumstances.  

Everyone is capable, and we all have spirit in us, sometimes, you simply need to focus on it and ask the universe for help.  

I understand that this journey can be overwhelming, but remember, you’ve already proven your resilience and adaptability. The same strength that helped you build your business will help you navigate this transition successfully. This new chapter holds promise and opportunity waiting for you to seize them.

Remember, change is the only constant. It is the catalyst for growth, transformation, and new beginnings. So, as you stand at this juncture, poised to embark on the next chapter of your life, do so with an open mind, a willing heart, and the knowledge that you can make the most of whatever comes next.

I am mindful every day in anything I do.  I have made a decision to live this life.  There is another phrase by Ralph Waldo Emerson “Once you make a decision, the universe conspires to make it happen.”

It is true.  Make a decision on how you want to live your life.  The type of person you want to be, the type of person you want to share your life with, and theirs with you.  The people you want to be surrounded by.  Pray for it and put it out there, see what happens.

Because, after all, life is not about the destination but the journey.

Equity is a key element in DEI (diversity, equity, inclusion) and a core tenet for many women-owned businesses. Maintaining — or even growing — that equity when women leadership exits the company, however, isn’t guaranteed without the right management mindset and vision. With some clear planning, equity can continue to be a solid part of the business, and an ongoing opportunity to bring marginalized groups into leadership positions.

Equity in business has two meanings. Along with the obvious financial reference, it also applies to fairness within a company. In the latter case, equity is the idea that similar roles in a business are equally available and compensated regardless of gender, ethnic background, or any other factor that leads to marginalizing specific groups of people. Running a business with equity as a core principle fosters diversity and inclusion, which is an important part of breaking the generations-old “men are the leaders” cycle that’s preventing too many people from advancing in the business world.

Women entrepreneurs are in a strong position to guide their business so it operates with equity in mind while they’re at the helm. Ensuring that continues when they exit the business calls for planning in advance and instilling their values and vision into the company culture.

Start Planning Early

Your leadership values start even before your business launches. Building that into the company from the beginning helps make those values part of the company’s lifeblood. Leading by example is part of the equation, but also requires strong business and exit plans.

Building a solid business plan is more common for women entrepreneurs because they often face greater scrutiny when seeking investors and funding, according to Boston Consulting Group data. While strong business plans are useful for raising money, they also set expectations for how the company should run, and by extension, how fairly employees will be treated under your leadership, and the leaders who follow you.

Build an Exit Strategy

While waiting until it’s time to retire before thinking about an exit strategy might be tempting, starting on a plan much earlier increases the likelihood of a successful transition when it is time for you to move on. It also helps foster a mindset where you’re considering who — or what types of people — should be in leadership roles after you leave.

Planning for your exit is also about setting up your legacy. Grooming employees with the intent to craft them into leaders not only instills your vision for the company but also helps reinforce equity at all levels of your business. In essence, training with DEI in mind breaks through the barriers that have historically held back marginalized groups such as women, the LGBTQ+ community, and people with disabilities.

Read More: Finding Fulfilment in Passion Projects as a Woman Entrepreneur

Make a Fair Playing Field

Don’t just assume leadership will continue to assert your values after you leave. Set rules and guidelines to ensure employees are treated fairly, define compensation packages that prevent underpaying people in similar roles, and endorse transparency. Including those guidelines, and even explicitly stating discussing compensation is not forbidden, in company policy goes a long way towards ensuring transparency and equity.

The idea that employees shouldn’t talk about compensation with each other is losing popularity, and it’s taking one obstacle to equal pay with it. Employees who know they’re being paid fairly compared to their coworkers are less likely to leave and have a greater sense of trust in the company. At least some of those people will be key employees and leaders — the very people you want to make sure are still there to keep your vision and company culture alive after you move on.

California, Colorado, Washington, and a few other states already have pay transparency laws. The federal government also passed the Lilly Ledbetter Fair Pay Act in 2009 prohibiting discriminatory pay practices. Despite any legal requirements that may impact your company, it’s just good business to promote equity for your employees.

Closing the Door on the Good Old Boys Club

According to a Harvard Business School alumni survey, 76% of senior executives feel “a more diverse workforce improves the organization’s financial performance.” They found more diversity leads to higher team satisfaction, along with higher quality work and better decision-making. Looking at diversity from employees outside of the leadership team, a study conducted by Indeed revealed DEI in the workplace is important to 55% of job applicants.

Equity in the office clearly matters to the leadership and rank-and-file levels in a growing number of companies. That’s creating a great opportunity for women business owners to act as a catalyst to increase equity in the wider business community. The historical reality of white males domineering in the business world created an environment with limited equity where the people who look and act just like they do get promotions and serve as business leaders, perpetuating the “good old boys club.” That mindset is increasingly leaving employees frustrated, unhappy, and more likely to leave for a different job.

When a man exits a leadership role, the chances he would be replaced by another man have been historically high because that’s how businesses worked. When a woman leaves a leadership role, however, that’s an opportunity to break the cycle in favor of equity. Exiting a leadership role as a woman can open the door for an otherwise marginalized person to take on that responsibility and help build the diverse and equity-focused businesses leaders and employees alike want.

As a woman entrepreneur, it doesn’t matter if you’re retiring or taking a year-long sabbatical, finding the right successor for your business is critical. That means making a plan to ensure a smooth transition and a healthy company under new leadership. It’s about more than ensuring the company’s long-term success. It’s also about making sure you’re well-prepared to move into the next phase of your life.

Women business owners already have a head start because, as a rule, they tend to consider long-term planning more often than their male counterparts. That said, the majority of entrepreneurs don’t plan adequately for their retirement or selling the business, greatly increasing the likelihood it’ll fail when they’re out of the picture. Preparing your business to thrive well after you hand over the reins involves planning ahead, and the earlier you start, the better off you’ll be.

Choosing a Short-Term or Temporary Successor

Women entrepreneurs leave their businesses for personal reasons at a higher rate than men — often to care for family members, have a baby, or further their education — according to research from Harvard Business Review. The group’s study found women business owners are 15% more likely to leave for personal reasons compared to their male counterparts.

Instead of exiting the business permanently, however, temporary leadership responsibilities can be assigned to a trusted key employee. The interim leader can manage day-to-day operations for up to several months, and it’s an opportunity to groom a permanent successor. The experience they gain during your absence is invaluable.

Knowing who will take over is only part of the equation. You also need to know when. Setting well-defined guidelines for handing off leadership responsibilities takes the guesswork out of which events trigger temporary leadership changes. For example, a sabbatical could activate the short-term succession plan or an illness that exceeds a predetermined amount of time. The plan also needs to clearly state each leader’s responsibilities, and what triggers relinquishing those duties to the long-term leader.

Women entrepreneurs are often in a better position to adapt to short-term succession situations. Because of the strong pushback, they can face from investors, women-owned companies often have much more robust business plans, according to research from Boston Consulting Group. That attention to detail and forward thinking helps keep the company running smoothly even during a temporary succession event.

Choosing a Permanent Successor

When you own the business, retiring or permanently leaving isn’t as simple as submitting a resignation letter. Who will take ownership and control needs to be set well in advance so there’s time to prepare for a smooth transition. Typically, that could involve transitioning the business to a family member, selling to a co-owner or employee, or selling to a third party. Regardless of who is taking over, deciding if the business should remain women-owned, and under women’s leadership, is an important decision.

You also need to consider if the new leader fits with your company’s vision and can foster the culture you want. For many women entrepreneurs, choosing a successor is about leaving a legacy, and not simply finding someone who can take over.

Succession From Inside

If the successor is within the business, or a family member, grooming them for their eventual role and responsibilities increases the likelihood the company will remain successful and run smoothly after the transition is complete. Including them in decision-making processes, as well as business planning, builds experience and confidence in running day-to-day along with long-term operations.

Planning for a successor from within the company doesn’t mean you have to choose that person today if you’re still several years away from retiring. In fact, it’s a great opportunity to start a mentoring program to help female and marginalized employees build the skills and experience to be future leaders in your business, and possibly your successor, too.

Read More: Maintaining Equity When You Exit Your Business: Why it Matters for Women

Selling to the Successor

Whether you’re selling out to a co-owner, an employee is buying the business, or a third party is making the purchase, they need to know what the company is worth. Working with a valuations expert is a smart move because they can offer a holistic overview of what your business is worth that goes beyond assets and revenue into the overall industry, the market, future opportunities, and more. Your certified public accountant (CPA) helps, too, by providing important context to financial reporting. All of that, the buyer raises funds or gets a loan to complete the purchase.

Including a lawyer in the process is critical, too. Regardless of who is taking over the business, there will be legal documents to guide the process as well as protect the business and everyone involved in the transition. This isn’t something to leave to online legal templates. Instead, it requires a professional to ensure the documents are correct and accurate.

CPAs and attorneys are important, but they aren’t the only players who can bring value to the process. Your leadership team is already helping craft the company’s vision and goals, and their insight is a key part of the business’s success. Including them in the planning process makes sense because they have a vested interest in ensuring the company’s long-term health. They’re also the people who keep operations running in your absence, any may be part of the leadership team after you retire, too.

Don’t Procrastinate

Business is going well, revenue is growing, and retirement is in the distant future. This is exactly when succession planning needs to be happening. Defining the end goal for your succession makes it easier to build a plan that fits with your long-term business vision. If you aren’t sure what the right path is for exiting your business, your business attorney and CPA may be able to offer some guidance, and the Small Business Administration offers some resources, too.

Taking a proactive approach to succession planning sets everyone on a path for a smooth transition, whether it’s a short-term leadership change or a permanent exit from the company. It also prepares the business to continue operating in the event of an unexpected death or serious illness — situations we don’t want to think about but need to consider for the well-being of the business and employees.

It’s never too early to start working on your succession plan. In fact, it should be part of the startup process. Starting when you’re ready to permanently step away, however, can be a recipe for disaster. As a general guide, a solid plan should be in a place far enough in advance so you can work with your successor and start transitioning responsibilities at least three years before you retire. Without a plan in place much earlier, however, the business won’t be prepared for an unexpected exit, and the remaining leadership team won’t have the resources — and possibly the authority — they need to keep the company running.

Time to Move On

As a woman entrepreneur, you run your business on your terms. When it’s time to exit, that should be on your terms, too. Investing the time and effort to craft a succession plan is an important part of ensuring your company’s success under your leadership and for those who follow in your footsteps, as well as your success and growth after moving on to the next part of your life.

Starting your own business isn’t easy for anyone, and it comes with extra challenges for women. It’s even more difficult when you don’t fit society’s definition of “young.” But that doesn’t mean being an entrepreneur is off the table for aging women. Knowing what challenges may be in store makes it easier to plan ahead for success.

Women over 50, for example, decide to become entrepreneurs for many reasons, according to a study on female entrepreneurship. In some cases, they’re tired of being limited by their current employer. For others, they want a business that aligns with their personal values, they feel overqualified for their current role, or they see an opportunity to improve their financial situation. Regardless, the number of women who want to launch their own business later in life is on the rise and they’re facing common problems such as stereotypes, finding investors, resistance to their leadership and experience, and finding mentors and networking opportunities.

1. Age and Gender Stereotypes

In the entrepreneurial world, younger men are often seen as innovators and driven, whereas same-age women are categorized as inexperienced. As we age, men are perceived as having an experience while women are seen as too old. It’s a stereotype where men are given the opportunity to succeed, and women are expected to fail. Women are also stereotyped as caregivers, raising questions about their ability to balance launching and running a successful business with managing family home life.

Stereotypes aside, there’s a place for women entrepreneurs, regardless of age. In fact, it’s an excellent time for women to become entrepreneurs. The number of women-owned businesses increased by 21% from 2014 to 2019, according to data from the American Express 2019 State of Women-Owned Business Report. The 2022 National Women’s Business Council Annual Report notes that women-owned 20.9% of employer businesses in the US, and 41% of non-employer businesses. The number of women entrepreneurs, regardless of age, is on the rise.

2. Finding Investors

The same stereotypes aging women face as entrepreneurs are obstacles to finding investors and raising capital, too. VC firms, for example, tend to invest in companies where they can relate to the founders most easily. In other words, they’re interested in companies run by people who are just like them. Considering the venture capital market has more than its fair share of 35 and younger white males, that puts most people who don’t fit their demographic at a disadvantage. There’s some irony in that considering the 45 to 54 age group makes up just over 26% of new entrepreneurs, and over 25% are aged 55 to 64, according to data from the Kauffman Foundation.

High-growth businesses are also seeing an increase in women owners. Unfortunately, that isn’t translating into a corresponding increase in investments. Only 2.4% of venture capital went to women-owned startups in the first half of 2022. That number climbed to 17.2% for founder teams with a mix of women and men.

Since investors tend to favor their own, so to speak, seeking out firms specializing in women-run businesses increases the likelihood of receiving funding. Portfolia, for example, is a women-founded investment firm specializing in supporting women, LGBTQ+, and other minority-owned businesses. Golden Seeds is another example, focusing on investing in women entrepreneurs. Currently, there are more than 60 venture capital firms funding women-owned businesses in the US, and even big-name companies like Pepsi and Toyota are offering to fund, too.

A lot of potential investors assume aging women are closer to leaving the business world than their male counterparts. That means they’re likely to face more intense scrutiny when looking for funding. A strong business plan is important for overcoming those concerns, along with plenty of research: Firms with less faith in women entrepreneurs will have more questions, and you need to be prepared for them. They also, however, have years of experience and a lot of contacts — both of which they can leverage more easily to get funding.

Read More: Finding Fulfilment in Passion Projects as a Woman Entrepreneur

3. Acceptance as a Leader and Imposter Syndrome

Women in their 40s and 50s are often written off as entrepreneurs and leaders by their male counterparts, regardless of their skills and experience. Even worse, they can be dismissed as unsuitable business owners by younger men who don’t want to work with, or invest in, someone who “reminds them of their mom.” That can be a big self-confidence blow, and feed into imposter syndrome.

Feelings of inadequacy and imposter syndrome are surprisingly common in women’s businesses and have a negative impact on their leadership abilities. 75% of women in business report experiencing imposter syndrome at some point in their career, according to KPMG’s Advancing the Future of Women in Business: The 2020 KPMG Women’s Leadership Summit Report.

The majority of the women in the report who experienced imposter syndrome said turning to mentors and trusted advisors was helpful. Those may come in the form of colleagues and friends, along with resources from mentoring and networking programs.

4. Limited Networking and Mentor Options

Just because you have years of experience in the business world doesn’t necessarily mean you have all the skills — or connections — you want to start your own company. That’s where mentors and networking come in, and it’s a place where women often see a lack of options. But that doesn’t mean resources aren’t available.

Bizwomen from The Business Journals hosts mentoring and networking events for women in cities across the US, for example. eWomenNetwork offers networking and learning events, as well as conferences. Ellevate Network also supports women in business with their networking and other events, plus their annual Mobilize Women Summit conference. The WinConference focuses on women leaders and entrepreneurs with a different theme each year. And Hera Hub offers women-focused mentoring, education, networking, and workspaces in several US cities.

Finding women-focused networking and mentoring options can make a big difference in your personal and entrepreneurial success. The knowledge and empathy from people who have shared similar experiences is an invaluable resources, and offer personal validation, too.

Despite the potential hurdles, the number of women taking up the entrepreneurial mantle and starting their own businesses later in life is on the rise. Their successes are showing that ambition isn’t limited to just 20- and 30-somethings, and women can launch winning ventures in their 50s, 60s, and beyond.