The Emotions Involved When Selling Your Business

We intermediaries consider selling your business much like that of a marathon. It is a long process and takes much stamina, patience and hard work. I have had a few clients over the years decide to take it off the market due the amount of stress it placed on them while they were trying to run their business. One of my clients did this even before he had an offer due to all the conversations he had to have with potential investors and Private Equity groups. He was only at the 2 mile mark.

The sale of your business is often accompanied by other stressful changes or issues in your life at this time; health problems, divorce, forced relocation or poor financial issues. Even the best case scenario - you have built a great business over the years, and now it's time to move on. This can mean a great sense of loss and uncertainty.

For many business owners their business has been their life. They are afraid that they will lose their identity and worth once that is gone.

One of sad things to watch is someone who just can't let go even though it is time. Their energy and health isn't what it was when the business was growing, and the numbers begin to decline due to the lack of time and energy put into it. If they had sold it when the time was right the purchase price would have been considerably more than waiting, due to fear of the future without it.

Anger and defensiveness often creep in as a deal progresses. Buyers can be insensitive when they are criticizing how the business has been run, and they question all the variations in the financial's. Most of the time the questions are valid but they can have a cumulative effect on the seller. Some use the criticism as a bat to beat down the selling price. Whomever does the due diligence, whether it is a team of professionals or the buyer them self, they should not be offensive in attacking the seller. They will uncover what they uncover, get the answers to the "why's" and then decide it they are moving on or not. No need to put the Seller in the hot seat. Remember the buyer will need to depend on the Seller for a smooth transition so why not keep the relationship solid?

Another emotion in the deal can be the Seller mistrusting the buyer. Some buyers will try and manipulate the situation by stalling the deal in some way. This of course makes the Seller loose faith in the buyer. Seller's can get frustrated, mad and impatient. Some will be beaten down and will lower the price and others will just walk away.

Be prepared for these pitfalls that typically will happen. Be prepared not only with your business in the right shape to go to market but be in good mental shape to take on the marathon. You will get through it but trust me many days during the process you will be ready to quit. Think of how good it will feel when it is behind you. Remember the mirror.