Soft side of negotiations: very emotional sellers
January 11, 2022
by a searcher from Henley Business School in Helsinki, Finland
Hello Search people,
I have faced couple of deals so far where the seller - who's baby we are talking about is getting over-emotional after relationship is built and everything else seems logical and clear.
It seems like afraid of "loosing" the personal identity formed while building the company during previous decades. In these cases it is not about money, valuation, deal conditions or any other hard and logical issues (which could be negotiated further) but probably a fear of loosing the way of living. It does not help if the seller has passed his/her "best-before-date" and is too used to live as an entrepreneur.
Any experiences for resolving such an issue to help the seller to took the decision and also find a new identity post-sales?
from University of Illinois at Urbana in Dallas, TX, USA
Do they have any hobbies? If they've been running/growing a successful business, and perhaps a family, they may not have had any time or interest to explore anything beyond these. That said, if you can get them to open up about what they like to do in their spare time, that can help them fill the void left by not being responsible for the business and its employees/customers. I wouldn't be as direct as stating, "Well you'd get to travel more", but rather just listen to them talk about any passions and let them bridge the gap.
Secondly, *and this is not right for every situation*, you could add some type of Emeritus status that you offer owners, to give them privileges to still visit the facility, and participate in occasional events (i.e. Holiday parties) or PR. This could further appeal to their sense of pride even beyond the wind-down period that you offer during transition. This is heavily dependent on the company's business and culture, and would have to be capped because you will want to provide clarity to employees on who is now running the business and don't want the seller coming in too often to create distractions. That said, I think a thoughtful plan can create a softer landing.
Lastly, continue to convey that you will care for the business in the same degree that he/she did. This means employees, customers, suppliers, community, etc. If you turn it into a partnership and assure them that you will preserve the legacy of the company (which is inherently tied to the seller's reputation even for a period after closing), then it should loosen their grip and mitigate any 11th hour indecision.
Good luck!
in Galena, IL 61036, USA
As long as you're respectful during the interactions you have with them early and make sure you stay in touch, you might well have a second chance at it when they come to their senses.