Some business founders, who have long since left the “survival” phase of building their business when money was actually extremely tight, overlook the fact that their beliefs haven’t changed or adapted with their business growth. Such that their attitudes and behaviours, which are governed by those beliefs are out of sync with their logical aspirations today, when it comes time to “exit” (maximise wealth).

I see this in my retainer work with 30% of entrepreneurs and founders seeking to realise their lifetime’s work, particularly in the latter stages of their careers (a full or minority sale of the business). It is particularly prevalent in those, who have arguably hung on too long, suffered through poor health for a brighter future or an unforeseen event that has precipitated a sudden sale.

They perpetuate trying to do everything in areas that they are visibly struggling with or not an expert (transition planning, attracting and converting interest with buyers), in order to save a paltry amount of money (fear of going broke). All the time feigning interest in external expertise, other than to unearth a “solution” (buyer or investor relationship) that they might consummate directly. Money is more emotional than logical.

The mindset is “I managed to sell my business for $120 million and it didn’t cost me a thing” (long forgetting the angst, excessive risk and the labour intensity for they and their families in the days to cash landing in their bank account).

How do you know your business couldn’t have realised $190 million? How do you know that the terms and conditions with the payment schedule (indemnities, earn out etc.) couldn’t have been exponentially more favourable to you? How do you know that there weren’t cheaper sources of capital within or outside your business? How do you know the “process” couldn’t have been completed in half the time taken?

You don’t but you have to trust your judgement at some point, and recognise the limits of your behaviour (talent) and skills. After all, drawing blood is a relatively straightforward procedure but you’d feel far safer in the hands of a trained nurse, irrespective of the cost. Common sense comes at a cost.