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How To Manage Emotions When Selling a Business

Anytime you go through a major transition in your life, whether it be marriage, moving into a new house, etc., there are going to be strong emotions. Selling a business is one of the biggest changes in a business owner’s life. So, naturally, you can expect to experience a range of emotions. It helps to understand these feelings and prepare for them to ensure you have a more pleasurable experience throughout your sales journey.

What Emotions are Involved With Selling a Business?

There are many emotions involved with selling a business. Of course, there are the positive emotions such as excitement and pride. However, you may experience some less desirable emotions, such as guilt, sadness, and uncertainty. Below is a review of some of the more commonly reported feelings and emotions owners go through when selling a business.

Excitement

The good news is not all of the emotions are negative. Most business owners feel a sense of excitement when they sell their company. This stems from the idea of a substantial payday from the buyer that allows the owner (and seller) to pursue their next ventures in life (business, retirement, etc.). Of course, this excitement can also display itself as nervousness. It is important to plan for the future and maintain a vision of your long-term goals, but you should also take the sales process one day at a time and avoid getting too far ahead of yourself during the journey.

Pride

You should also take time to be proud of yourself. You have successfully grown your business into what it is today. The sales process can become hectic to the point where self-reflection is a challenge. However, it is important to do so. Think about all you have accomplished and appreciate the moments you have had as the owner of your company. This allows you to approach the sale with confidence and contentment, which helps you have a more enjoyable sales experience.

Guilt

This is one of the most commonly reported emotions among business owners who decide to sell. Many feel as if they are letting their employees and/or business partners down. If it is a family business, then these emotions are usually amplified.

So, how can we get past this feeling? You can ensure you select a buyer that continues your vision and keeps your employees on staff. Also, keep in mind that you would be doing the business a disservice to continue going as owner if you have different interests that take your focus or if you are ready to retire.

After all, your employees, clients, and business partners deserve an owner who is motivated and able to sustain and grow the company reliably. If you are no longer in a position to remain fully invested as owner, then it may be best to sell. Moreover, you should be able to do so in a guilt-free manner as you understand that a change in ownership is what is best for the future of the company.

Sadness

For most business owners, their company is like their child. The emotions involved with selling the business are in some ways similar to sending a child off to college or watching them get married. In other words, there is a sense of loss when you decide to pass the torch to a new owner. This feeling may be amplified if you feel as if there are aspects of the business you could have done better or accomplished more (as so many business owners feel).

You can help overcome these feelings of sadness by focusing on all that you have accomplished. Find pride in the work that you have done and what the company has become, even if you feel as if there are areas where you could have grown the company more and done a better job. Moreover, you can help deal with these feelings by seeking a buyer who continues your vision and may be willing to go after some of the growth opportunities you were never able to attack while you were the owner.

Uncertainty

Many business owners experience a fair amount of uncertainty when they sell their company. Much of this uncertainty stems from whether or not they should sell. For most, there is always a part of them that wants to hold on to the company, and they are uncertain about proceeding with the sales process.

Additionally, many experience uncertainty in regard to their company’s worth and the types of offers they will receive. Similar to selling a house, the owner does not want there to be an extended period of time between listing the company and accepting an offer. This leads far too many to question their company’s value even if they have a justifiable valuation.

The best way to overcome the uncertainty of whether or not to sell is to focus on long-term goals and what you want for your future. For instance, if spending more time with your family is what matters most to you, then focus on this and allow this to guide you to more confident decisions. As it pertains to uncertainty throughout the sales process, focus on the facts and figures. Make sure you can justify your asking price based on financial data and growth potential.

Stress

Unfortunately, stress is often a part of the sales process as well. There are certain stages in the sales process that are more stressful than others. For instance, the due diligence process, where the seller opens up their company to the buyer entirely for review, is a stress period for many. Also, since there is usually an obligation to maintain the confidentiality of the sale, this can make simply going to the office stressful as they progress toward a sale. If setbacks occur, then this may amplify the stress as well.

You can deal with stress by reminding yourself why you are selling in the first place—the end goal for your exit strategy. In other words, during the more difficult moments, focus on the light at the end of the tunnel. Of course, preparation is also a great way to minimize stress throughout the sales process. It helps to have professional assistance in your corner to help you prepare, such as a broker, attorney, and/or certified public accountant (CPA).

How Can I Cope With The Emotional Impact of Selling a Business?

There are several ways to cope with the emotions involved with selling a business. However, every coping strategy should be entirely personalized according to what works best for the individual. With that said, here are some of the best ways to deal with emotions when selling a business.

Allow Yourself to Experience The Emotions

First, it is important to acknowledge that strong emotions may exist throughout the sales process. This is normal, and you should allow yourself to feel the range of emotions. This helps you deal with them directly and move past them. Otherwise, the emotions could continually build and disrupt your experience and the sales process.

Entrust Yourself With an Experienced Team

A business sale is not something you should approach alone. From preparing your financial and legal documents to closing the sale in a proper manner, there are many complexities involved with the sale process. For this reason, you should trust a team of professionals to help you out. This may include a business broker who assists you with all stages of the sales journey. In some cases, you may benefit from an attorney and certified public accountant (CPA) as well.

Implement a Balanced Daily Schedule and Lifestyle

It is all too easy to become overly consumed with your business sale. This leads many owners to not provide themselves with adequate time to rest and relax. Instead, focus on activities outside of your work as much as you can, such as spending time with family and exercising regularly. A quality work-life balance is a great way to help minimize negative emotions throughout the sale.

Stay Focused and Calm

It is easy to become frustrated with some of the unforeseen obstacles business owners often face during the sale, such as insulting offers, setbacks, and prospective buyers backing out of deals. In a sense, it is important to expect the unexpected and stay focused and calm if and when you face obstacles during the sale. This can be easier said than done, of course. However, techniques such as meditation may help alleviate anxiety when you face challenges. Also, it can help to stay focused on your long-term vision to help avoid feeling discouraged.

Final Thoughts

The sales process is fraught with emotion, but you can manage them by acknowledging the feelings, having a good support team in place, and focusing on your long-term goals. A business sale should be an enjoyable and exciting experience in someone’s life, and it does not have to be filled with stress. By preparing and taking the process one step at a time, you can help ensure a pleasurable and successful sale.

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