Deciding to sell your business, putting it up for sale, finding the right buyer….Any change, whether professional or personal, is a source of anxiety and discomfort. Leaving something for which we have a strong attachment is not easy. This is also the case for managers who are selling their company.
Change: a natural process in 5 steps
Change is uncomfortable because we lose our bearings, our habits. We will have to adapt to the unknown, to the new. Accepting change takes time, but in the end we accept it. This is what psychiatrist Elisabeth Kluber-Ross (1926-2004) tells us. This
was a pioneer in the palliative care approach for people at the end of life. She is known for her theorization of the different emotional stages (Kübler-Ross model) experienced by a person who learns of their impending death. This theory can be applied to any form of catastrophic loss.
The 5 stages of change that allow to accept a new situation are schematized on the curve below. Each person navigates from one to the other at his own pace.
It applies to all situations of change including the transfer of businesses.
STEP 1 – SHOCK AND DENIAL
When an upheaval occurs and we are not prepared for it, the first reactions are shock, stupefaction, denial and refusal of reality. The shock will be all the more brutal when a business transfer is forced or unexpected. The transferor must therefore prepare for the transfer in order to mitigate this suffering. However, it should be noted that, even if the transferor has been preparing for the transfer for several months, or even years, he must still carry out real mourning work.
Examples of possible reactions from the seller during this phase: “It’s as if I’ve had a limb amputated“, “It’s not possible for me to give up my business“, “My business can’t function without me“, “The employees and customers still need me“.
STEP 2 – ANGER AND FEAR
This phase begins the moment the transferor starts to become aware that the transmission process has really started. The most frequent affective expressions of this phase are: desire and search for what is lost, escape from the present situation, avoidance, hyperactivity, nostalgia, guilt́, remorse, anger, revolt…
Among the possible reactions of the transferor, we can cite several examples: “I could have organized things differently“, “I regret that none of my children wanted to take over“, “Why didn’t I know how to interest one of my children“, “I would like to have this company and be 30 years old“, “If I could be in the place of the new boss“.
STEP 3 – SADNESS AND FEAR
This marks the recognition of the definitive nature of the loss and therefore the gradual return to external reality and its acceptance. The following affects are the expression and consequence of the disinvestment of the lost link: destructuring, disorder, loss of reference points, depression, withdrawal, silent sadness, feeling of uselessness, lowered self-esteem, devaluation, physiological problems (insomnia, headaches…).
Here are some examples of possible reactions from the seller: “I’m at the end of my rope“, “I don’t know where my marks are anymore“, “I’m a bit lost“, “I went to see the doctor so I wouldn’t collapse“, “I don’t sleep anymore“, “I didn’t want to show my loved ones that I was suffering“, “It’s like I’m worthless, I’m a dead weight“.
STEP 4 – THE QUEST FOR MEANING/ TESTING/ ACCEPTANCE
This is the end of the mourning process. The seller accepts to detach himself from his company and to re-socialize in other social, economic, cultural, associative or leisure activities. This reconstruction consecrates the irreversible character of the loss.
Examples of possible reactions from the seller: “From now on, it’s over, I have to move on to something else“, “For me, it’s a new life, a rebirth“, “I stopped all activity, I am vice-president of the Federation of the BTP“, “At the request of the CCI, since my retirement, I help young creators to set up their projects“.
STEP 5 – SERENITY AND NEW STRENGTH
At this stage, people have understood and integrated the change. They project themselves more easily into the future. Knowing this theory allows one to relativize and overcome the emotional states one goes through when committing oneself to the transmission of one’s business. It shows that the uncomfortable situation will find a positive outcome with time by being accepted.
Ready to pass the torch with peace of mind?
At Actoria, we believe that the key to success for the transfer to take place in the best conditions is not to neglect the preparation upstream. It allows us to address all the professional but also personal aspects related to the transfer.
The key to overcoming the stages of this life change and avoiding unpleasant moments remains good preparation and support at every stage so that nothing is left to chance and you remain serene.
By Fabienne Gallet, Mergers & Acquisitions Consultant Actoria
FAQ
What services does Actoria provide?
Actoria specializes in mergers and acquisitions advisory for small and mid-sized businesses. Our services include company sales, succession planning, buy-side and sell-side mandates, business valuation, financial diagnostics, investor sourcing, negotiation support and full transaction execution until closing.
Who does Actoria work with?
We support SME owners, family-business leaders, shareholders, entrepreneurs, private investors, and corporate groups seeking to acquire or divest businesses in Europe and North Africa.
In which countries does Actoria operate?
Actoria has local teams in Switzerland, France, Belgium, Luxembourg, Morocco and Tunisia, and manages cross-border deals across Europe, Africa and the Middle East through an international buyer network.
How many potential buyers are in Actoria’s network?
Our proprietary network includes more than 6,500 qualified industrial buyers, strategic acquirers and financial investors, allowing us to match sellers with high-quality counterparties.
Does Actoria support confidential business sales?
Yes. Confidentiality is fundamental to our process. All discussions, documentation and buyer approaches are handled discreetly to protect the interests of the seller and the business.
What industries does Actoria cover?
We advise companies across multiple sectors, including industrial production, manufacturing, services, IT and digital, healthcare, logistics and distribution, construction, and specialized B2B services.
What is the typical size of businesses Actoria represents?
We primarily advise SMEs with revenues generally ranging from CHF/EUR 2 million to 100 million, depending on jurisdiction and market.
How does Actoria determine the value of a business?
We perform detailed financial and strategic analysis using multiple valuation methods, including discounted cash flows, market multiples, asset-based methods, and sector benchmarking.
How long does a business sale process take?
A standard transaction typically takes 6 to 12 months depending on market conditions, buyer interest, company complexity and diligence requirements.
Why choose Actoria as an M&A advisor?
With over 20 years of experience, a senior advisory team, a structured methodology, and an extensive network of qualified buyers, Actoria delivers independent advice, tailored execution and strong transaction results for SME owners.
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They trust us
Actoria has swiftly identified the inefficiencies in our company’s processes, proposed optimizations, and implemented them effectively. Furthermore, Actoria has provided outstanding support throughout all stages of our company’s transfer to a group within our industry. This includes preparing our company, identifying potential buyer partners, and negotiating up to the point of the partner’s capital entry. Actoria delivered expert negotiation skills and secured a valuable partner for us.
We were quite anxious to find a solution, as my health was deteriorating rapidly. Actoria’s consultant played a crucial role in the successful completion of my company’s sale. Their involvement was essential in executing this delicate project, as it impacted our daily operations. This project, which was close to my heart and increasingly necessary, was made possible thanks to the decisive momentum provided by Actoria.
First, Actoria conducted a thorough assessment of our company’s strengths and weaknesses, and then suggested incorporating these insights into our management approach to enhance our company’s value. Actoria led this project alongside my entire management team, enabling the involvement of all key personnel, and swiftly implementing a solution that allowed an investor to enter our capital. This was complemented by the inclusion of some of my company’s executives and a bank.
I couldn’t be happier with the result, but I am especially pleased with my decision to work with Actoria. The success of this mission was the direct result of Actoria’s hard work and sophisticated professionalism on my business. From our first meeting through the reasonable preparation process, all phases of the transfer, legal and financial operations were managed by the Actoria team. Their skills were even more evident when the complexities of this transaction were at its peak.
Hiring Actoria made the difference to achieve my original goal and move on to my next professional challenge. Selling a company like AMR in this market has not been an easy task. Actoria has demonstrated perseverance in identifying good buyers with knowledge of my industry in order to continue the development of my business, and has provided professional advice throughout the process.
The company’s sales process was a lengthy and challenging journey. The professional support from Actoria made this endeavor much more manageable. I would like to extend special thanks to the consultants from Switzerland and France for their highly effective collaboration. Your consultants proposed creative solutions during the negotiations, which effectively overcame significant obstacles in order to finalize the agreement. Their experience, knowledge, and professionalism played a crucial role in the success of this transaction.
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