The Psychology of the Sale

Hosted by ACG Cares, which is also run by LaLone, the event aimed to introduce a new conversation in the dealmaking process that sheds light on protecting sellers’ mental health during and post-exit. “We spend so much time talking about the deal, how quickly we can get to closing, and the overall value of the transaction,” says Winter. “The thought with this event was to focus on the humans and emotions involved, whether it’s the owner, employees, the owner’s family and even the attorneys, accountants and other consultants. All of these individuals are going through an emotional rollercoaster through the process and we must not forget it. In fact, we need to look out for each other.”

A Rare Conversation

Moderated by LaLone, the panel included strategic business coach Chris Meso, neurobehavioral coach John Bell and entrepreneur and CEO of Stealth Consulting Wes Mathews.

All of these individuals are going through an emotional rollercoaster through the process and we must not forget it. In fact, we need to look out for each other.

Mark Winter

Identity

The experts not only shared their insights into the importance of mental health during the exit process but also dived into their personal experiences. “The Psychology of Selling a business panel discussion focused on the importance of being emotionally prepared when selling a business. We encouraged trusted advisors to include this element as part of their due diligence checklist, and the need to have a team that’s going to help you become not just prepared for selling your business, and to help your employees get ready to sell, but helping you, as an individual human being, get emotionally prepared to sell your ‘baby,’” says LaLone, referring to the business founders grew from the ground up. Selling it “can be emotionally devastating the day they walk out the door and say goodbye to it all,” adds LaLone.

Both LaLone and Winter acknowledge that challenges arising from selling one’s business are multifaceted. For some entrepreneurs, the sudden shift from a busy life running a company can create a sense of a lack of purpose or direction. Other founders may stay with a new owner’s team post-acquisition to help the transition, a process that can be equally jarring as a once hands-on owner must now step back and watch others run their company.

Having open conversations about these experiences was a profound success for ACG Detroit’s panel, which sold out. LaLone says many attendees noted that these conversations aren’t often had, and that programming focused on mental health within M&A are also rare. “The event clearly provided tremendous value for all who attended and gave the panelists an opportunity to go deep with their feelings and experiences,” says Winter. “The audience was surprised at just how raw and unfiltered the panelists were and acknowledged their appreciation through highly positive feedback.”

Panelist Meso similarly heard positive feedback. “A couple of weeks after the event, I ran into a number of people who thought it was very powerful,” he tells Middle Market Growth.

The Role of M&A Partners

Meso has his own experience with navigating the difficulties of an exit and post-exit experience after his company Mobile Air was acquired in 2015. “It takes a hot minute—a hot minute being up to a year—to really figure out who it is that you are going to be next” after you sell your business, he explains.

That experience proved crucial to Meso, now a strategic business coach at T Rex Advisory and at business succession advisory firm Q5 (with which panelist Bell also works). Meso describes Q5 as a shared platform for trusted advisors, CPAs, attorneys and other key partners to communicate with business owners and each other on initiatives like developing an organizational strategy or improving work culture. “It’s a platform to open up communication with an owner and his or her key advisors, and to start to look at them as a human being first, on a personal level, and understand what their next purpose is beyond what they do today,” explains Meso.

That collaborative nature reflects the importance of M&A partners in supporting founders in the exit process.

While one goal of the ACG Detroit panel was to shed light on the seller’s journey and the importance of psychological preparedness in the exit process, another aim, says LaLone, was to influence change within the M&A community and make mental health awareness part of the best practice of dealmaking. That means getting M&A partners involved. “We service providers are busy doing all the other things that are part of the transaction and helping the seller, but we’re really not playing the psychologist role of helping them get prepared for the exit and what they’re going to do the day after, the month after and the year after,” he says.

Of the thousands of deals that close every quarter in America, how many of their deal teams are thinking about what’s going to happen to a seller a year from now? I challenged our audience to be part of the front line of emotional preparedness.

Doug LaLone

FisherBroyles

Of course, it is not the role of an accountant or investment banker to provide psychological support. But as key partners in the exit process, these professionals have an opportunity to look out for the signs of psychological distress and provide resources to sellers who may be struggling.

“Of the thousands of deals that close every quarter in America, how many of their deal teams are thinking about what’s going to happen to a seller a year from now?” says LaLone, noting that M&A partners work so closely with sellers, they are well positioned to notice the first signs of emotional distress. “I challenged our audience to be part of the front line of emotional preparedness.”

ACG Detroit plans to hold the event again next year, this time with a focus on a seller’s experience post-exit.

Carolyn Vallejo is ACG’s Digital Editor.

Middle Market Growth is produced by the Association for Corporate Growth. To learn more about the organization and how to become a member, visit www.acg.org.