20 Golden Nuggets - 10

Dealing with Legacy Customers and Suppliers

Long-term relationships with customers and suppliers are often considered an asset when selling a business. However, legacy relationships can sometimes be a double-edged sword. If these relationships are heavily dependent on you as the owner, they may become a liability when you exit.

To avoid this, work on transferring those relationships from yourself to your team. Encourage your management team to take over communication and ensure that key customers and suppliers are comfortable working with them. The less reliant your business is on you for maintaining these relationships, the better.

It’s also important to ensure that contracts with both customers and suppliers are in place and up-to-date. This will give buyers confidence in the continuity of these relationships after the sale.

Golden Nugget -  Long-term relationships are valuable, but only if they aren’t dependent on you. Transition key relationships to your team well before your exit.