The latest findings in brain research show that more than 95% of the processes in our brain occur on “autopilot.”
This type of automatic behavior has far-reaching consequences, especially when it comes to business succession. The behavior we’ve been conditioned to exhibit since childhood leads, in practice, to potential weaknesses (risks) being overlooked or completely ignored. This applies above all to the seller’s side.
In principle, our brain does nothing other than compare all sensory perceptions against reference experiences and then make a decision on how to act. Since selling or buying a company is uncharted territory for most entrepreneurs, they lack relevant experience in this area.
Applied to the topic of business succession, this means:
The “emotional” aspect is completely underestimated. Many entrepreneurs initiate the sales process based on their own experiences. Only when the entrepreneur repeatedly realizes that their tactics aren’t working do they consider alternatives (the “after-the-fact” principle). Unfortunately, this is often too late. In the best-case scenario, a trained facilitator who is accustomed to working with difficult personalities can help here.
Questions and Answers
Why are emotional factors so crucial in a company acquisition?
No one buys a Porsche just to drive a car. And just as no one buys a company just to make money. On the other hand, no entrepreneur sells their company just to have a higher balance in their bank account. This means that the actual motives for acquiring or selling a company—or any other object of desire—always lie on an emotional level.
Does that mean no rational decisions are made when selling a company?
Every rational decision always has an emotional origin. A decision that, at first glance, appears to be based on rational grounds is in fact based exclusively on the emotional experiences one has had up to that point. This explains, for example, why some people are unafraid of any risk, while others suspect a sniper lurking behind every bush. These differences are solely attributable to past experiences. In psychology, this is referred to as a cognitive association or cognitive imprinting.
How, then, can this problem be solved in the context of business succession?
Every entrepreneur looking for a successor for their company must be aware that emotional factors are 100% decisive in determining whether or not they will find a buyer. Therefore, it is extremely important for the entrepreneur to understand what makes them tick—that is, “which stimuli elicit which reactions in me.” The saying “self-knowledge is the best path to improvement” hits the nail on the head here.
