This article is an extract from Transmission Private’s monthly newsletter, The Lede, which tracks the world of reputation management for private clients. You can sign up for the newsletter on our website via the tab at the bottom of this article or by completing the form here.
Sixty-three percent of entrepreneurs say they are now actively considering selling their businesses or would consider doing so in the future, according to Lombard Odier’s new report on entrepreneurship. At the same time, a further 32 percent say they have accelerated succession plans over recent months. 🤝
Why are more people considering selling now? The pandemic has forced many to radically reconsider their priorities. Lombard Odier’s poll results are revealing. Fifty-six percent of entrepreneurs say they want to slow down and change their lifestyle, 48 percent think that they can command a good market price right now, and another 38 percent think it’s the best course of action given present market forces
But, what worries people about selling up? Surprisingly, emotional challenges command more attention than administrative ones. Fifty-five percent of entrepreneurs say that ‘emotional attachment to a business’ was their biggest obstacle to selling up — and for Millennials, this concern was as high as 66 percent. On the other hand, only 45 percent of people were worried about the tax and legal implications, and just 33 percent about managing their wealth for the future.
Why is communication key? Communicating the sale of a business is often the most effective way to manage and, indeed, overcome emotional attachment in a positive and practical way.
- Articulating motivation. Announcing a sale in carefully worded language enables an entrepreneur to explain why they have chosen to move on, whether that is to focus on their family, invest in other businesses, or devote themselves to philanthropy. This helps many entrepreneurs start the journey of forging their new identity.
- Safeguarding legacy. Making an announcement gives an entrepreneur the power to control the narrative around the business sale in a positive way, as well as articulate how they grew the business over their tenure and ownership.
- Fostering understanding amongst colleagues. Many worry about how the business sale will be perceived by colleagues, friends, and peers; taking control of the communication gives entrepreneurs the power to control their external perceptions — and, ultimately, foster compassionate understanding.
Takeaway... more entrepreneurs are considering selling their businesses than ever before — but emotional attachment, understandably, remains an obstacle. Effective communication can help founders move on smoothly.
