Several years ago, I was representing an owner, helping sell his manufacturing company.  It was a good business with strong cash flows, and we identified several potential buyers.

One buyer was particularly well qualified, from both an experience and a financial standpoint.  The offer exceeded our client’s expectations and we moved forward with negotiations.

Then, at the eleventh hour, the business owner started making unrealistic demands and changed the agreement.  When I asked for an explanation, the client told me the buyer was too young to run his company. 

That buyer was 39 years old and had already proven himself successful leading larger organizations.  He would have been a great success, I am sure.

When it came right down to it, my client just wasn’t ready to sell his business and was looking for a reason to back out.  He wasn’t emotionally prepared to walk away.

When people first think about selling, they focus on the dollars and cents.  How much money will they make?  What are the tax ramifications?  Can they get enough to retire?

But while many business owners are busy examining their finances, they fail to examine their hearts.  They ignore the inevitable—that they will eventually have to walk away from their company and start a new kind of life.

This is a business they have grown and nurtured for years.  They worry about its future and the company name.  They want the business to grow and thrive, and it’s difficult to entrust that responsibility to someone else.

It’s not just the company’s future that causes stress.  Many business owners fail to prepare themselves for personal life after the sale.

For several years, their business has been a primary focus, a place to go and a place to channel their energies.  People know them because of the business and their identity hinges on that association. 

The closer the owner gets to a sale, the larger reality looms. 

At Cornerstone, we believe emotional readiness is so important, we bring in a business psychologist to meet with each potential seller.

It’s meant to be a casual conversation, but tears are not uncommon.  Spouses share goals they’ve never talked about before, and some the toughest leaders reveal heartfelt concerns for their employees and customers.

You need to be ready for the emotional pressure, and that means having a clear picture of the future. 

Don’t set these goals alone.  Include your spouse, your family.  Meet in advance with a financial advisor and a business intermediary.  Do this, and the process will be much less stressful on you and everyone around you and you will have a better chance of a successful sale.

Scott Bushkie is President of Cornerstone Business Services, a low to middle-market M&A firm with offices throughout the upper Midwest .  Reach him by phone at (920) 436.9890