Merger & Acquisition Insights

Protecting Personal Health Protects the Sale Process

Posted on March 16, 2020 by Beau McGinnis

So often in an acquisition environment, owners are solely focused on preserving the health of their business that they often neglect their own health. While this certainly an unintended consequence, it can be both a short-term and long-term detriment to a number of parties. It’s no secret that the acquisition process is a taxing one, and one that can be prolonged if obstacles are encountered. With that, it’s important to be not only mentally focused, but physically and emotionally focused (which share a much closer relationship than one would assume). Walking through a hypothetical scenario shows just how valuable staying healthy is in an M&A environment.

Meet Dave – Dave is a 63-year-old man who started his business from nothing 38 years ago. Since then, Dave has put countless hours in his business, and brought it to a flourishing operation that provides a livelihood for his employees, community, and even his customers. Dave is looking to exit to be able to spend more time with his wife, kids and grandchildren. He’s never had any previous health conditions other than a number of sleepless nights – an unfortunate normalcy for any business owner.

Months into the process Dave begins encountering sequential sleepless nights, anxiety, stress and poor dietary practices. He’s simultaneously trying to run a business and work through an exit process, a task that is certainly not for the faint-hearted. Dave soon begins to realize that because of the lack of sleep, he can’t think clearly during negotiations. Because of the poor dietary habits, he’s got a lack of energy. And his stress has caused him to become short-fused with his employees and even his relationships outside of work. Not addressing these items from the forefront has made him spite coming to work, the place he’s loved for so long. So, what does he need to do/should he have done?

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Sleep – Sleep is so vitally important through a sale process. Just like a professional athlete needs a good night’s rest before a big game, an owner needs to be on top of their game each day. Maintaining the business’ performance through a sale process is vitally important and without a clear mind and energized body, it’s tough to do. The recommended amount of sleep per night is seven to nine hours. Making that a normal practice will pay dividends.

Diet & Exercise – People cope with stress differently, some escape to their hobbies others will look towards food. Stress eating impacts all ages, from college-students to exiting business owners. What’s important is what’s being consumed. Fatty foods filled with preservatives and sugar do not serve the body well in times of stress and high-cognitive needs. There are still plenty of delicious snacks/meals to eat – bananas (potassium keeps blood pressure low), salmon (omega-3 fats serves the heart well), yogurt (dairy assists in relieving tense muscles), and even nuts (boosts immune system).

Further, exercise is proven to have direct stress-busting benefits. Physical activity pumps up the brain’s “feel-good” neurons, endorphins. It allows for more productive days and more focus. A simple 20-minute walk after dinner can do wonders and actually contribute to the first point – a better night’s sleep.

Talk it Out – Although we serve as an advisor to the sale process, we don’t take the privilege of being a friend, lightly. A business owner exiting is difficult, especially after all the capital they’ve injected into the business, both monetary and human capital. It’s known that talking through worries, stressors and problems helps alleviate stress. In a sale, it’s a tough environment to go through alone. Instead of keeping it penned up, it’s encouraged talk to a spouse, a business partner who knows about the sale, or even talk to the M&A advisor. Some of the most memorable calls we’ve had have occurred between the hours of 10:00 pm and 1 am.

Ultimately, owners can’t neglect their health. That stands as a general statement for life, but for this purpose, through a sale process. The last thing someone wants to do is jeopardize their exit and the ability to profoundly impact their employees, community and family. Focusing on the most basic practices of good health will prove worthwhile in the sale process, even if it may not feel that way in the moment.

Tags: Selling a Business

Category: Articles