Jon Sayah Almost Lost Millions Selling the Family Business

What really happens when a successful family business enters the private equity market before it’s fully prepared?

In this episode of The Fork in the Road, Perry S. Kaufman speaks with Jon Sayah from LES Family Investments about growing up inside his father’s lighting company, navigating the complicated dynamics of working with family, professionalizing the organization, and eventually selling the business to private equity.

Jon shares how his father grew a small Dallas lighting operation into a company with as many as 30 retail showrooms. After an unsuccessful first attempt to join the family business, Jon spent 15 years building experience at a major lighting manufacturer before returning with a clearer role and a deeper respect for what his father had created.

The conversation explores how the company adapted as e-commerce, foreign competition, and LED technology disrupted the lighting industry. Jon also explains why the company’s first private equity deal fell apart after due diligence revealed gaps in its financial systems, inventory controls, and business data.

Perry and Jon discuss why founders should begin preparing for a sale several years before going to market, how a transaction can distract key employees from running the company, and why working capital disputes can reduce the amount a seller receives after closing.

They also examine family succession, estate planning, ownership among siblings, and the challenges that can arise when private equity investors become heavily involved in daily operations.

This episode offers practical lessons for founders considering succession, outside investment, or the sale of a privately held company.

Topics include:

Family business succession
Preparing a company for sale
Private equity due diligence
Business valuation
Working capital adjustments
Estate planning for business owners
Professionalizing a founder-led company
Managing family dynamics
Selling a privately held business
Post-acquisition leadership

Learn more about Perry S. Kaufman and The Fork in the Road at perryskaufman.com.

00:00 Welcome to The Fork in the Road
01:25 Growing up in the family lighting business
03:09 How Lights Fantastic was created
04:03 The ceiling fan opportunity
05:04 Working in the business as a child
05:48 Why Jon’s father sent him elsewhere first
08:08 Returning to a struggling family company
09:06 Why Jon and his father clashed
10:14 The challenges of family business dynamics
12:15 From founder to second-generation leader
14:30 Returning after 15 years
16:11 Dividing responsibilities between generations
17:20 Why the second attempt worked
19:01 Professionalizing the company
21:29 Hiring a CFO and improving operations
23:31 The disruption of e-commerce and LED lighting
26:09 Why the company fell behind
28:31 Deciding whether to sell
29:44 Starting the private equity process
32:01 Why the first deal fell apart
33:53 Prepare your business three years early
34:58 How a sale distracts your leadership team
37:11 The reality of private equity due diligence
39:10 Working capital adjustments after closing
42:00 Estate planning for family business owners
44:45 Using a trust to transfer the business
47:42 Dividing ownership among siblings
49:32 What private equity gets wrong
52:01 Why sellers struggle after an acquisition
53:00 Jon’s biggest lessons for founders
55:41 Why preparing for a sale improves any business