Letting Go: Overcoming the Emotional Side of Succession

For many years, John dreamed of the life that awaited him beyond the confines of owning and running his successful business. In many ways, John glorified what his exit would look like and the freedom he would feel by stepping off. Of course, he was excited at the prospect of having more time with his wife, his kids, and his grandbabies. There would be trips abroad. More golf. And long, relaxing walks on the beach. John was convinced that when the time came, all he had left to do was iron out the financial details of the merger or acquisition. However, what John didn’t realize until his exit grew nearer was how deeply linked his identity was to the company he had built and was leaving behind. In fact, that emotional connection was by far the most significant challenge he would face in exiting his business.?

John’s story is not unique. Owners, particularly those who built their organizations from scratch, often feel a strong emotional connection to their companies. In many ways, the business feels like an extension of themselves and seemingly as much a part of them as their DNA. After all, it was their blood, sweat, and tears that launched and grew the company into the success story it ultimately became. It was their hard work, personal sacrifices, and financial investment that created opportunities for their employees and customers. For so many years, the buck started and stopped with them alone. It turns out that even under the best of circumstances, willingly letting go of your business can be overwhelmingly difficult to emotionally navigate.?

Poignant Challenges of Exiting Your Business?

It can be tough to relinquish control and trust that your successor will run the business in a way that honors your legacy. Will they uphold the company values and vision that you painstakingly created? Will they continue to cultivate the culture you have built? And what about taking care of all those employees that you feel so protective over??

While emotional attachments to your business can run deep, there are effective ways to soften those feelings of loss, regret, and longing.?

Mitigating Emotional Loss Through Strategic Exit Planning?

Thoughtfully planning your exit beyond the financial and contractual aspects of the sale is an important component of an emotionally positive transition into post-ownership. This might mean different things to different business owners and pose more of a challenge to some than others. Consider the following suggestions as foundations for emotional well-being when the time comes to strategize and execute your exit strategy:?

Redefine Your Purpose:

Early in the process, explore new passions, hobbies, and opportunities. Identify those things that excite and energize you. Reposition post-business ownership as a new beginning, not an end. Consider consulting roles in your industry. You might even have another company that you want to launch. Go for it.?

Engage in the Transition:

Your role in your transition doesn’t need to be limited to the seller. Particularly if the new ownership is coming from within the company, mentoring the new business leader or staying on as an advisor can be very rewarding. Maintaining a meaningful connection to the business can help alleviate the sense of loss that might come with an exit.?

Seek Support:

Navigating the emotional aspects of succession can be challenging, but you don't have to do it alone. Consider leaning on other business owners who have walked in your shoes. At The Alternative Board (TAB) our peer advisory boards commonly tackle challenges and opportunities that TAB board members are experiencing. Facilitated board meetings with 8-10 high-performing owners and a certified business coach keep solutions flowing and conversations on track. While no two businesses are identical and exit strategies can take many forms, TAB boards are invaluable assets for business leaders at every stage of their ownership journey.??

Feel free to DM me if you want to discuss your exit strategy or learn more about joining a TAB board.

Jim Cummings

President / Owner - TAB Western Connecticut

The Alternative Board?, serving business owners in the region

205 Sugar Maple Way | Middlebury, CT 06762

Phone: (203) 394-2852

https://www.thealternativeboard.com/western-connecticut

https://www.dhirubhai.net/in/jamespcummings

See my calendar - book a time here

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