Seller's remorse can occur prior to, and after the sale of a business. After decades of hard work (and hopefully enjoyment too) the business owner sometimes finds it difficult to walk away and enter a new phase of their life – regardless of the financial considerations they are receiving. Business owners need to prepare for their exit, and the transition to retirement or a new challenge – and its often not about the money. I’m seeing more and more of this in the real estate industry, and will expand on the ideas and concepts around transitional planning in my next blog.

Here’s four key indictors that the business owner may be feeling remorseful about selling the business:

1. Unfinished business, they still have the passion

Drive and passion from its leader, are key ingredients to the success of any business. But when I’m talking to an owner these ingredients can raise red flag issues that they are serious about moving on. I’d rather be hearing them talk about their plans after the business and how they have planned their transition. I get calls every week from owners who say they want to look at selling, but in reality they were just having a bad day. Its a serious issue, and can even lead to legal disputes where time and money has been spent on a transaction and the seller pulls out for no apparent reason or any condition in a contract.

2. Self Worth and Identity

This one involves transitional planning and/or the lack of it. Owners committed to selling with withdraw from the ‘coal face’ and slowly become more invisible. Step down from the CEO role, and operate more like a board member than one of the team. Many owners are recognised in their local community an the owner of a successful business, and this is about to change. A more staged transition exit from business is often the key. This may include joining the local Chamber of Commerce, mentoring and coaching roles, industry trade association activities, even charity work.

3. Did I Undersell It?

Every business owner I’ve met tells me why their business is that little bit better, and therefore worth that little bit more. Sell A Business has a process that establishes ‘fair market value’ for a business built around industry benchmarks, comparative sales, financial LVR’s, and most importantly, the profitability of the business. As an appointed advisor, we are always asked “Is there anymore ? Am I underselling 35 years of my life?” In real estate, everyone has an opinion – but your friends and relatives may not be aware of the strengths and weaknesses of your business, so be careful who you listen to regarding valuation multiples.

4. What Do I Do Now?

This involves the fear of the unknown, so we may simply avoid the issue. Over the years, I’ve seen any number of highly successful businesses simply close down because the owner left their run too late, and due to health reasons (and others) were forced to stop. Business owners are busy people, but they must take time away to plan their future life after business. Travel, volunteer work, get fit, time with the family, start a foundation, new challenges, hobbies, charity work, run for public office.