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I’m sure that there are several on Humble Dollar who have navigated this path – selling a family business and moving on to whatever is next. We are part way along that journey, and it feels like a good time begin sharing our story.
For some background, we own and operate an automotive workshop in a small country town called Heyfield in Victoria, Australia. My Dad is now a 60 year veteran of the automotive industry, having commenced his apprenticeship at 16, and looking to finally exit at the age of 76. Dad tried to exit working life at 68 but found out he was not very good at retirement. He still really needed to be in business, so decided it would be a great idea to buy a workshop in Heyfield that had been on the market for some time.
I was 20 years in engineering and project management. I was reasonably successful, so each project got larger than the last. Once the budget got over a certain mark, everything went from interesting and satisfying to very stressful. So owning and operating an automotive workshop sounded pretty good.
Over the last 9 years we have exceeded our expectations. We started with no operating software, no customer list, no staff. Just a workshop and a steady trickle of local customers. We have been able to increase to 8 staff, build a really strong customer base and create a steady, profitable business.
But with my Dad now well into his seventies, and starting to see 80 on the horizon, we decided that it would be a good time to sell the business. This would give my Dad a chance to try out retirement again – I hope this attempt is better than his last! And at 51 it gives me the chance to tackle something new and different for my next chapter.
At this point we have a buyer that has had finance approved and is waiting for the final documents from the bank, so they can “sign on the dotted line”. Every indication is that the sale will proceed successfully, but I’ll really believe it when the money is in the bank!
So while we wait for the bank, moving at it’s own glacial pace, some thoughts on the process.
Joys and sorrows of small business
Over 9 years we have had great joy and satisfaction from building a strong local business.
We have had very loyal and stable staff, many of whom started with us as apprentices or with no previous experience. We have seen all our team grow and develop. There were difficulties, challenges and mistakes along the way, but our crew has been a real strength of the business throughout.
We have also developed some wonderful relationships with our loyal customer base. In a small town, a business like ours feels very, very interconnected with the local community and economy.
But small business is hard. We work long, intense hours. Dealing with the general public is challenging. Modern motor vehicles are complex, and getting more so all the time.
Our time in this business has been a tremendous success, but that success comes only with lots of effort and grit.
Passing the baton
During the sale process, both my Dad and I have been well aligned that we don’t want to just extract every possible dollar from the sale. We want to be paid a fair price, but we want to drive past the workshop and see it thriving. To bump into our staff around town and hear that they still have interesting, well paid jobs.
I have often thought of an article by Nick Maggiulli, “Don’t take the last dollar” on his Dollars and Data blog. Nick argues (quite rightly I think) that striving to get every dollar in this particular negotiation won’t necessarily get you the long term result you would desire. That mindset has helped us keep a focus on what’s important. We regularly tell the buyers that we want them to succeed. That during the handover phase we will do all we can to set them up with the information and knowledge they need. That after handover we will remain available for any questions they might have.
It feels good to be passing on a business with these discussions being at the forefront, rather than arguing over line items in a contract.
What’s next?
For me, I refuse to think about that yet! As I said, I’ll believe a sale is complete when the money is in the bank. Then I’ll explore my next phase in life, maybe after a little holiday.
For my Dad, I really hope that he can navigate the transition to retirement better this time. Apart from his 4 year apprenticeship, all his automotive career has been either in partnership or as owner of a small automotive business. He has committed so much time and energy to that pursuit that moving into retirement will not be easy. But I’m hopeful and optimistic that at 76, nearly 77, he is better prepared than at 68!
**** 19th June 2025 update – Our buyers have quit their day jobs, and will soon be in our workshop “learning the ropes”. Suddenly my head is spinning! ****
Best of luck in your efforts, all appears totally honorable in trying to help someone navigate their new venture.
My husband sold his company just before retiring. The buyers made a down payment with the remainder to be paid over an agreed term. As part of the seller financing, my husband required each of the buyers to sign a personal guarantee. This came in handy, a few years later, when one of the buyers didn’t want to pay. Our friends weren’t so lucky when they sold their plumbing business; they didn’t have personal guarantees.. The new owners defaulted, and our friends got back what was left of the business and inventory.
Greg, you’ll be successful at whatever you decide to do in the next chapter. I’m hoping that includes more articles at HD. 🙂
Thanks Cheryl. We are very fortunate that the sale is outright payment on the day of settlement, so no concerns about ongoing payments.
I’m starting to feel a few nerves about what might come next – hopefully I can find something that suits!
Thanks for your article. I started two bona-fide businesses and there came a time for change in each. I understand the issues of dealing with the general public and I avoided that as much as possible. We were B2B and also worked directly for industrial companies.
In an earlier attempt you stated that your Dad found out he was not very good at retirement. I hope he has created some goals in this retirement. A “small business is hard. We work long, intense hours.” and yes, the continuous learning curve with ever changing automotive technology has been a challenge. He’ll likely need a replacement for this.
Greg, I enjoyed your article and your thoughts on running a small business.
With your dad’s and your work ethic, and dedication to taking care of clients and staff, I know the next chapter for each of you will be successful and fulfilling. Best of luck.
Thanks Andrew, I really appreciate your kind feedback.
Congrats, and let us know when that check clears! I worked for three small businesses in my career. Two went down the tubes and the last one was acquired by a much larger company. I hope everything works out for your customers and employees.
I predict your Dad will be restoring some old relic of a vehicle relatively soon!
Jeff, also hoping that everything turns out OK.
Ironically, my Dad has no interest in working vehicles for fun. Automotive has always been a business. So he will have to find something else!
Greg, best of luck to you and your dad, and best of luck with the buyer. I pray he serves your friends and customers with the same love and care as you did.
That wasn’t the case after I sold my business. The buyer paid me as agreed, but was not liked by my customers. He probably lost 50% of the business during the first couple years.
I felt terrible after the sale.
Dan, sorry to hear that things went south after the sale.
I think it will be important for us to remember that we can help to prepare the buyers for success, but after handover there is nothing more we can do. We feel like they are a good fit, but only time will tell.
I just sold my business on the 30th of April and I can relate to not believing it’s happening until the money hits your account……but this I can tell you…. it’s such a lovely feeling seeing the bank balance when it eventually arrives!!
Thanks Mark – we are cautiously optimistic but will remain nervous until the end.
Congratulations to both of you, and best wishes for the next phase. Are there any volunteer opportunities your father might find interesting?
I think my Dad can explore some volunteer roles, but right now the whole process is all consuming. Hopefully with some time to slow down he can find some meaningful roles to get stuck into.
Greg, thanks for an interesting post and the link to Nick Maggiulli’s article. Four years ago we sold our long-time home in PA. It had been in our family since 1965. I remember being very happy that it sold to a young family with roots in the area. Best of luck in your transition.
Thanks Rick. I find that Nick Maggiulli has some really interesting articles, merging both the nerdy end of personal finance along with some honest, heartfelt views on money and life.
Greg, that is an exceptional description of Nick M, well said. I’ve never thought much about it, but that is they type of writing I would aspire to.
Nice companion piece to your In Defence of Work.
That definitely makes more sense in the context of you now needing to find work that will feel meaningful to you. Best of luck – I’m sure with your attitude and the template you’ve seen from your dad that will go swimmingly.
Great post, Greg. As I was reading it, I also saw parallels to what our daughter and her husband are going through this summer buying their move up house and selling their first one.
A good and reliable auto business like your dad and yours is needed by everyone, even those of us who do some of our own repairs. Chris
congratulations on running a successful small business. It’s much like running amazon except you dont have anybody doing all the things that successful businesses require. I ran a small business (30 employees in 4 different states) for 38 years and sold it when I was diagnosed with Cancer. the surgery went well and the company I sold to decided to put me on the board and put me in M & A so now I get to contact other people in my business and see if they want to sell. I have done that successfully 11 times in the past 13 years. So there is a life after you sell, and it may be something you never even thought of..
congratulations and good luck going forward
JJ Gonzalez
Thanks JJ. I genuinely have no idea what I’ll do next, but excited to see what it might be. Glad things worked out so well for you, and that your health recovered.
Greg, it sounds like you and your dad have built a business through a focus on excellent service to your customers. And it appears you are seeking to serve your last customer–the buyer–just as well. I’m interested in reading comments from others who’ve been through a similar process.
Thanks Edmund. I like that concept that our buyer is our last customer – a nice way to frame things.