understand as a Buyer because a sale transaction can take many months and the Seller will have many people commenting (accountant, lawyer, friends, etc.) and if the deal feels unfair, this is likely to be discovered and the transaction may become a statistic when they pull out. Physical Freedom - This ties into the first point about why people really sell. The switch in the heart that says it's time to go, time to do something different. Most often, the Sellers’ new activities are already identified and often even underway. They need to sell the business so they can do that 3-month cruise, for example. It is important for a Buyer to understand these things as it can be helpful to remind the Seller of what they really want and the opportunities for these new activities if things get challenging during the sale process and/or they start having second thoughts. Real Retirement - This is important and often misunderstood. This point refers to a mental state, not a physical one. Most business owners have lived with the pressures of their business on their shoulders and in their minds for most waking hours over the last many years and even decades. Real retirement is when the pressures of the business no longer live in their heads and they have genuine freedom. It is no use sitting on a beach in Spain if you spend half the time worrying about your business! This needs to be understood as often Buyers position deal structures in purely financial terms, often not understanding why the owner does not want to roll some equity or has issues with lots of risk post-sale. Often the answer is that this scenario does not offer them ‘real retirement’ and another type of deal structure that may not look as financially advantageous may actually give them the peace of mind and freedom they are looking for (and deserve).
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