In 2014, accounting firm Price Waterhouse Coopers (PwC) conducted a revealing study exploring the experiences of business owners after they had exited their companies. The study, titled “Exiting Your Business: A Life-Changing Event,” was designed to uncover not just the financial aspects of business exits, but also the emotional and psychological outcomes for owners who had gone through this life-altering transition.
In my experience as an M&A advisor, I know this to be true – the emotional and psychological elements of an exit are often as heavy as the business points during an exit.
This particular PwC study focused on business owners who had exited through sales, mergers, or generational transitions. The results showed that while many owners achieved financial goals, a significant portion struggled emotionally and psychologically after the exit.
As I tell in the opening chapter of my book, “Second Wave Life”, I read this story not long after watching first hand as a client confronted and battled through this… and ultimately he decided to just keep working instead of selling. So, the experience was still fresh and I was just beginning to dig into the reality of the problem.
One of the most striking findings in the study was that nearly 75% of owners surveyed felt profoundly unhappy or unfulfilled within a year of selling their business. The study highlighted a consistent theme: although business owners had prepared financially and legally for the sale, they had neglected to prepare personally and emotionally.
A handful of key themes emerged in the entrepreneurs that were interviewed:
Many owners experienced a sudden loss of identity. Having spent decades identifying as “the CEO,” “the founder,” or “the business owner,” they found themselves unsure of who they were without the business. This identity crisis often led to feelings of disorientation and regret. Owners also struggled with finding purpose in their next season of life. For years, their business had been the organizing principle of their lives. Without the daily challenges, decisions, and achievements that came with ownership, many reported feeling “adrift”. PwC noted that purpose and legacy were rarely addressed during the exit planning process, yet – they became dominant concerns post-sale. Most owners had focused solely on financial or transactional aspects—valuation, deal structure, taxes—but neglected to ask, “What’s next for me?” PwC concluded that this failure to plan for the personal transition contributed heavily to the dissatisfaction that was voiced in the survey.
Not surprisingly, many respondents were blindsided by the emotional toll of the exit. Owners reported feelings of grief, loneliness, and even depression—emotions they hadn’t anticipated. For those whose self-worth was closely tied to their business, letting go was particularly painful. They learned firsthand what author Annie Duke meant when she wrote: “When your identity is what you do, then what you do becomes hard to abandon, because it means quitting who you are.”
Finally, the study also noted unexpected strain in personal relationships. Some spouses had assumed more family time would follow the sale, but the owners often became restless or even started new ventures without communication. The lack of alignment between expectations created tension. This is particularly concerning – because worse than struggling with your emotions post exit is feeling that way in the midst of a strained marriage!
I help entrepreneurs experience their exits as “Transformative, not transactional”. In doing so, I keep them out of “the bottom 75%”
When I initially read the study, it served as a powerful cautionary tale. Fortunately, it also points the way toward better outcomes. Here are the key strategies I help my clients implement to avoid post-exit dissatisfaction:
What will your life look like on Monday morning after the deal closes?
Define Your Purpose Beyond the Business
We start by defining your unique purpose beyond the Business. Remember, purpose isn’t replaced by a check. Business owners must actively design a post-exit life that includes new roles, goals, and ways to contribute. This might include philanthropy, mentorship, serving on boards, starting another venture, or investing in a cause they care about.
A big part of this success comes in knowing you can actually plan for the change in identity. Recognize that identity will shift and plan for it. This may involve redefining oneself outside the context of the business: as a mentor, author, investor, volunteer, or even full-time grandparent. Create a new narrative for who you are and what you do.
Talk to “your people” – don’t assume your loved ones share your post-exit vision. Talk with your spouse, children, and close friends about your hopes and concerns. Invite their input so that they are partners in the transition rather than observers. Don’t be surprised to find they have formed their own expectations for what you may be doing… Spouses or life partners should also be involved in the planning to align expectations.
Ask for help – I encourage my clients to hire great transaction attorneys, because “…there is a time in life to hire an expert.” Finding an advisor to help you through this personal planning is no different.
That’s why I wrote my book and have created “Second Wave Advisors” – a network of experienced professionals, armed with unique tools to walk alongside you through this significant and critical life change. If you are interested in learning more, please schedule a free, no-obligation discovery call today.
The 2014 PwC study underscores a truth many owners overlook: selling a business is not just a financial transaction—it’s an emotional journey and a profound identity shift. Owners who fail to plan for the human side of the exit often find themselves disappointed, regardless of their financial windfall. The good news is that with intentional planning, clear purpose, and a support system, business owners can intentionally craft a deeply satisfying “Second Wave LifeTM” that brings purpose, impact, and fulfillment long after the deal is done.
