Our Expert is: Keith Frein
Qualification: Keith has successfully built a company from $5,000 to 44 million. Keith is now spending a wonderul time with his family and building another great business.
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Tip #14--Why Did I Sell My Business?
April 8, 2008

The number one question I get asked by people is "Why did you sell your business?". The answer, for me, is quite simple. It was worth a lot of money AND I was ready to move on.

The first part of my answer---"It was worth a lot of money"  At some point during our journey my partner and I realized we had created a company that had significant value associated with it. There was a huge nursing shortage and we recruited nurses. Big companies and venture capitalists were looking for well run, profitable companies within this space. Typically, in business, if you are in a niche where there is a need and you can create a well run company with recurring revenue stream, it translates into a "multiple of earnings" when you are ready to sell. When I decided I was ready to exit, we had no shortage of buyers that wanted to purchase my shares. My partner and I had developed a philosophy that we would build it to sell it. Many entrepreneurs have what is called an exit strategy. If you don't develop one, the company could eventually own you and not vice versa. If you are a CEO/ Founder, setting up an exit strategy is critical. Without one, it is similar to having a ship without a rudder. You drift and have no control over your final destination.

The second part of my answer--"I was ready to move on"  I stared my business when I was single, 26 and no kids. I sold my business when I was 38, married and had 4 children. Life changes. I was no longer willing to put in the 70 hour work weeks and live out of a suitcase. I had reached that critical point in the road, which every business owner or Executive must face at some point. What is enough and what is important to me. Jet setting around the globe, staying at 5 star hotels, eating out all the time and never being home had lost its appeal. Reading bed time stories to my kids, teaching them how to play piano, having a regular date night with my wife and taking care of myself physically and mentally were what was driving me now. I picked up my toys and went home.

Life is a balancing act. If I had the answers on how you could never fall off the tight rope, I would gladly share it with all of you. For me, I struggled mightily to balance family and career. In my case, I felt in order to be the kind of dad and husband I signed up to be, I needed to hit the reset button. My only advice that I can offer is to make sure you occasionally check in with yourself and ask, "If my life ended today, what would my legacy be?" If you don't like the answer, as I didn't, do something about it.

Keith Frein is the former Co-CEO and Co-Founder of PPR Travel. During Keith's tenure as Co-Founder, the company was ranked as the 5th, 7th and 8th best Small Company to work for in the United States by the Great Places to Work Institute. Keith has recently retired and is working on bringing a new nutritional beverage to market through relationship marketing. Please send comments or questions to keith081@gmail.com.

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