19
NAVIGATING THE SELLER’S
EMOTIONAL JOURNEY
Selling a business is not a purely financial
transaction. It’s an emotional process. Many sellers
built their business over decades and view it as part
of their identity. They may also be approaching
retirement, facing burnout, or managing a family
transition.
Brokers must be empathetic yet firm. Helping a
seller understand that the market determines
value—not emotions or sunk costs—is an essential
step in aligning expectations.
When sellers are guided gently through the
valuation process and understand how buyers view
risk, they are more open to compromise. A seller
who receives early education is less likely to pull
out during negotiations due to disappointment or
distrust.
MANAGING TERMS, NOT JUST PRICE
Misaligned expectations aren’t always about price.
Deal terms such as seller financing, training periods,
and working capital adjustments often derail deals.
Common gaps include:
• Sellers assuming they can walk away
immediately after closing
• Buyers expecting a three‑month transition and
training period
• Sellers wanting full payment at closing while
buyers need seller carry
• Disagreements over working‑capital
adjustments
The best brokers address these points upfront.
During the listing and buyer introduction phases,
they clarify what support the seller is willing to
provide and what deal structures are feasible. This
avoids re‑negotiation after the LOI stage, where
emotions run higher and trust can be fragile.
BUILDING A REPUTATION
THROUGH CONSISTENCY
Setting clear expectations is not merely a tactical
move—it’s a long‑term brand strategy. Brokers
who consistently educate their clients and avoid
overpromising earn trust in the market. Buyers
know their listings are well‑researched, sellers
refer other business owners, and deal professionals
respect their professionalism.
A REAL‑WORLD CAUTIONARY TALE
A manufacturing business in Southern California
was listed by a broker who agreed to a seller’s
inflated price. The business had low margins, high
customer concentration, and was heavily dependent
on the owner—but the broker feared losing the
listing if they pushed back.
For two years, the business sat on the market.
Qualified buyers passed. Eventually, the seller’s
motivation declined, key staff left, and profitability
dropped. When it finally sold, it was for less than
60% of the original asking price.