Sell a business is often the biggest business transaction in an entrepreneur's life. Yet it is precisely the emotional part of the process that is most underestimated.
Entrepreneurs that I speak to regularly find that they are sufficiently rationally prepared, figures in order and market knowledge at hand, but are still surprised by the emotional impact on their identity, decision-making and negotiating behavior.
What we often see is entrepreneurs wanting to complete the deal too quickly, purely to get rid of the pressure. A case study illustrates why this so often goes wrong and what an entrepreneur can learn from it.
Let's just do it and get it over with.
A CEO I worked with recently had been running a service business for twenty years. The offer from a strategic buyer was on the table and there was little in the way of substance. Yet in the negotiations, I noticed that he increasingly said, 'Let's just do it. I want to move on.'
Not because the deal had suddenly improved, but because the process exhausted him mentally. He felt pressure from the buyer and put pressure on himself because he thought the team also wanted clarity quickly, when employees often know nothing about a sales process. Above all, he felt that his role as an entrepreneur was coming to an end.
In that emotional fatigue, he almost agreed to terms that would have put him at a long-term disadvantage, including a stricter earn-out and limited control over the transition phase. During our conversation, it became clear that it was not the deal itself that made him insecure, but rather the emotional side that was acting up. After all, he has dedicated most of his life to this business, and the idea that it would soon be owned by someone else felt oppressive to him. By being aware of this, making it open for discussion and taking a little more emotional distance, he was better able to look at the proposals through a business lens.
The final deal was not only better business-wise, but also felt to him like a controlled and considered move rather than a fleeting step forward.
What can an entrepreneur take away from this?
1. Being prepared means more than valuing and negotiating
The emotional impact often begins before the sales process. Entrepreneurs who tie their identity strongly to their business are at greater risk of doubt and regret. By thinking in advance about what the sale means to you, together with family, partners or advisers, you prevent emotions from coming to the table only during the negotiation, where they can weaken your position.
2. Create distance during negotiations
Negotiating pressure is normal. But emotions can cloud rational considerations. An outside adviser acts not only as a negotiating expert, but also as a buffer: someone who stays sharp where you get tired and prevents you from agreeing to terms "just to get rid of them."
3. Monitor the long term
One of the biggest pitfalls is agreeing too quickly. Not because the offer is good, but because the process feels heavy. Just then, it is crucial to dwell on the consequences in three, five or 10 years. A deal is not a sprint, but a strategic choice that determines your future freedom and financial position.
In short, awareness is essential
Selling a business is also an emotional process, and those who underestimate this risk a less favorable deal or unnecessary regret later. By preparing as well (as far as possible) for the emotional impact as for the business side, you create peace, overview and negotiating power.
An adviser plays an important role in this, has the emotional distance that you do not have and can therefore look at it objectively. This ultimately results in not only the best deal, but also a better transition to what comes next.
