MBOs
are a positive solution to both selling a business and simultaneously rewarding
those who have worked hard to make it successful. However, the stakes are high,
egos can get in the way and many of the potential pitfalls are to be found in
the emotional hurdles that need to be overcome. Well established relationships
need to transition; self-limiting beliefs can be triggered and if not dealt
with disaster can ensue.
Letting Go Prompts Fear
Having
started a business and overcome all the challenges that come with building a
successful company, when faced with the actuality
of ‘letting go’ the exiting owner can feel threatened.
Such
fears are not logical. In our rational mind we know it’s time to move on but
the absolute finality of no longer having a ‘responsible role’ can cause the
exiting owner to panic internally. Questions arise such as ‘who am I now?’ and
‘what is my value to the world?’
Suggestion: If retiring rather than setting up
another business have clear defined projects to progress to once the MBO is
complete.
Becoming an Adroit CEO Takes Time
The
first couple of years after the deal are the most challenging. It takes time to
transition from being a competent manager to becoming an adept CEO. The skill
sets are different. Managers can be excellent motivators and administrators,
efficient at installing and adhering to systems, but may be risk averse and
lack vision.They do not automatically have the intuitive wisdom and innate
trust in themselves to handle difficult, entirely new situations.
Suggestion: Offer the new CEO a mentor,someone who
can allay self-doubt and limiting beliefs.
The Importance of Trust
Trust
is a measure of our ability to live with uncertainty, and faith that all will
turn out for the best even when things look difficult.When we trust others, we
reassure and inspire them, and they lift their game as a result.The more we
are willing to trust, the greater the gift we give and the more we are likely
to receive in return.
Trust
is pushed to its limits when the previous owners witness the new management
team doing things differently, especially if their strategies fail to work
immediately. In such cases the new management will respond best if they are
allowed to sort out their own challenges.The former owners can indicate they
are available to help, but that is all.They must resist judgement and
condemnation. Also, fretting and worrying tends to attract the exact negative
outcome it is most in fear of.
Suggestion: Surrender, let go of the situation and
give it up – not in the sense of giving in, but surrendering to the Universe in
the faith that all will come good.
Conclusion
All
MBOs are based on future anticipated performance and forecasts and as such are
best guesses. During what can be lengthy and detailed negotiations it is
vitally important to stay in touch with our intuition. It enables us to see
behind statistics and forecasts and make useful decisions in spite of
incomplete information.
Our
intuition is an inner voice that we all possess and an astute counsellor. It
comes with an uplifting feeling, unlocks creativity and brings about win-win
solutions. It frequently defies logic, at least initially, but is complementary
to it. It is when feel relaxed and centred that we allow space for our
intuition to come through.
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