Don’t underestimate the power – and value – of your emotions when planning to sell your business. We break down what to expect and how to cope
As an entrepreneurial advisor, selling your business is more than just a transaction – it’s an emotional journey. You’ve spent years building and nurturing your client roster, collaborating with staff and honing your investment philosophy. Your business is a part of you, and it’s natural to have a lot of feelings about exiting.
“It’s not just selling the business, it’s this new identity around who you are, especially if you’re no longer working. You can expect to have a lot of mixed emotions,” says Liz Doyle Harmer, an executive coach who counsels corporate leaders and entrepreneurs.
The average age of advisors in Canada is 10 years older than the general population, yet just one in two advisors have a clear path to succession. There are multiple reasons why creating a plan can be challenging, from defining goals to identifying the right successor or purchaser, to ensuring you realize the full value of your business. But emotions can also play a big role in delaying your progress. We spoke with Doyle Harmer about the psychological impact of selling, and strategies to help navigate this significant life change.
Accept Your Emotions
There’s an old adage that says business and emotions don’t mix – but that’s not the reality of the human experience. In fact, studies have shown that emotions play a significant role in business decision-making . “It’s normal to have emotions, and it’s OK to spend time with them,” says Doyle Harmer.
“It’s normal to have emotions, and it’s OK to spend time with them.”
– executive coach Liz Doyle Harmer
Having mixed feelings about selling your business might catch you by surprise, but don’t tell yourself to snap out of it. Ignoring emotions could significantly derail your succession planning and get in the way of your negotiations – after all, it’s difficult to make objective decisions with unchecked grief or regret bubbling just below the surface. “You make reactive decisions based on your emotional state in the moment, rather than value-based decisions that are more deeply connected to what you care about in the long term,” Doyle Harmer explains.
Name the Feelings
Succession planning might elicit a slew of different emotions, some of them conflicting. Sadness at the thought of exiting might mingle with anxiety about what will happen to your clients once you’re gone; excitement about future plans and possibilities could be battling fear about this next chapter.
What you’re experiencing is valid - research has found that having mixed emotions activates the brain in ways that are unique from when you experience a single, pure emotion. These bundles of feelings can be especially difficult to navigate and lead to a general sense of overwhelm and paralysis.
“It’s challenging for us as humans to sit with one emotion, let alone two or more,” says Doyle Harmer. The first step to untangling mixed feelings? Start to identify and label them individually. A good tool for this process is the
Feeling Wheel, a diagram developed by therapist Gloria Willcox that shows concentric circles that group emotions into categories. In the centre are primary emotions such as happy, sad, angry and surprised, which branch off into multiple related emotions, like hurt, empty or powerless. Use the wheel to help pinpoint what you’re feeling, writing thoughts down as you go. This process can help you gain a deeper understanding of your emotions and how they’re affecting you.
Get Curious
Once you’ve identified what you’re feeling, you can figure out why these emotions are popping up and identify actions that can help you manage them. “Emotions point to our needs; they aren’t just random things that come from nowhere,” Doyle Harmer notes.
“Emotions point to our needs; they aren’t random things that come from nowhere.” – Liz Doyle Harmer
If you were to stop right now and take a moment, which of the below do you identify with the most?
- Worrying about the valuation of your business could signal that you need to assess your current processes and make changes to improve your sale price.
- Grief over leaving your business might be a sign that you need a more gradual exit.
- Anxiety about the well-being of your staff could mean you need to engage them in your plans. “Maybe it’s sitting down with your employees and asking them for their input, or maybe it’s operationalizing things so that your business is easily transferable,” says Doyle Harmer.
Not every emotion is a call to action, however. Sometimes just sitting with those feelings, no matter how uncomfortable they might be, can be helpful.
There’s a difference between making emotional decisions and using a thoughtful assessment of your feelings to help guide you through the succession process.
Let Your Emotions Guide You
Many of us try to work against our emotions, especially when it comes to making a significant decision like selling your business. But there’s a difference between making emotional decisions, which can be rash, and using a thoughtful assessment of your feelings as a tool to help guide you through the process. For example, says Doyle Harmer, while dwelling in sadness could stop you from making a succession plan, feeling sad about selling your business is a sign that your work has been meaningful. That information can help inform the choices you make throughout your succession process, from choosing the right buyer to finding meaningful ways to spend this next phase of your life.
Succession planning marks a significant milestone in your life. Acknowledging and understanding the emotions along the way will position you for a smoother and more successful transition. Remember that emotions are not signs of weakness but strengths guiding you toward the transition that works best for you.
At IPC, we’re committed to helping you sell your business on your own terms. When you’re ready, we’re here to talk. Book a no-obligation call to find out more. What's Stopping You?
