When I meet business owners, I prepare them for the process of selling their business. We discuss the valuation, the packaging and marketing, the diligence process, the financial structure of the deal, and the closing. I take time to discuss the emotional journey involved in selling a business. For many, it’s a deeply personal process, as the business they’ve built from the ground up often feels like their baby.
Many sellers think they know what they’ll feel: excitement and happiness. Pride in seeing their business through a successful transition. And those are all part of it. But the range of emotions is almost always broader and more complex than they’re prepared for.
One thing that takes many owners by surprise is the loss they feel. They’ve been a business owner, in some cases, for decades; it’s a big part of their identity as a person. If I’m no longer a business owner, a boss, a board member of the Chamber of Commerce, then who am I? It’s not uncommon for an owner to start second-guessing their decision to sell at some point.
Their employees, many of whom may be long-term, have become family to them. Leaving them behind feels like losing them, and it can be very painful. The emotions are compounded by the fact that the owner must keep the sale confidential until the very last moment. What the owner has had months to come to terms with is completely new to the employees and can be a major shock. The owner will have to help them go through their own range of emotions, from fear and uncertainty to anger and resentment.
The deal’s negotiation and due diligence phase can become quite personal and challenging. It’s challenging to run your business and be responsive to every request for information. You’ll be asked to justify your spending and business decisions over the years you’ve owned the company. By the end, it’s common to feel burned out.
That’s why it’s critical to choose the broker you work with carefully. Your broker will help you through the process and help you manage those strong emotions. While it’s probably all new to you, they’ve been there and done this before, so they know you’ll come out on the other side glad you made the decision to sell.
That’s why looking for someone you trust, who is a patient and empathetic listener, is crucial to a successful sale and maintaining your well-being throughout the process. Bonus points for choosing a broker who has actually started up and sold a successful business; they’ll understand what you’re feeling every step of the way.
No matter your reasons for selling, the end is always bittersweet. I recently worked with a seller who embodies the American Dream – an immigrant who came here with nothing. He even slept in his car for a while during his first years in the country. The man who offered him his first job as a delivery route driver eventually sold him the business, which he grew to 25 employees and sold for $3 million. He felt exhilarated – and more than a bit sad as well.
There’s no doubt that people who have successfully founded and sold a business are in a very exclusive club. They understand what it takes to build something from scratch, thrive under competition and adversity, and turn over a legacy they’re proud of to the next generation of ownership.
If you’re preparing to sell your business, you must also be prepared for the emotional roller coaster that’s ahead of you. But just like at the amusement park, the wave of pride and joy you feel when you step off will have been worth the ride.
If I can help you understand the value of your company in the current market, we offer a complimentary and confidential opinion of value.
