10. Final Stretch – Due Diligence, Pitfalls & Completion

A story about finishing strong, staying steady, and walking away with pride.

The handover was set for next Friday.

James sat in the lunchroom with Pete and Tania, sipping his tea slower than usual. He’d signed the contract yesterday. All the major conditions had been met. The deposit was lodged. The final week of due diligence was underway.

And yet, the room felt… heavier.

There were still things to do - logins to hand over, stock takes to finalise, a few customer introductions to coordinate, but it wasn’t about the tasks now. It was about time. About what came next. About who he’d be without this place.

Sarah had checked in that morning. “You’re almost there,” she said. “Stay present. This is when things wobble, not because they’re wrong, but because they’re real.”

James had nodded, grateful. It wasn’t excitement he felt. Not regret either. It was something quieter. Completion.

 

The Psychological Perspective

The final stretch of a business sale is often the most emotional and the most dangerous.

Many owners expect to feel relief once the deal is agreed. But what they often feel instead is uncertainty. It’s the emotional equivalent of stepping out of a moving train. You’re off, but the world is still spinning.

This is when doubts creep in -

  • Did I sell too soon?

  • Will they look after the team?

  • What if I miss it?

 

These feelings are normal. But they don’t need to dictate your actions. With the right mindset and support, you can honour the emotions without sabotaging the outcome.

The goal now is graceful exit. Not a rushed one. Not a reactive one. One you’ll be proud of later.

 

HR Best Practice

The transition period is not just a technical handover - it’s a cultural handover.

Best practice here includes -

  • A clear communication plan to staff about the change

  • Introduction protocols for the new owner

  • Finalising leave balances, entitlements, and employment continuity

  • Providing leadership support to help staff adjust

  • Avoiding “abandonment” signals, such as withdrawing early or emotionally disconnecting too fast

 

James made sure he had one-on-ones with his senior team. Not to explain everything, but to thank them. To reassure them. To give the change a human shape.

Buyers notice this too. Smooth handovers create long-term goodwill and increase the chance of earn-out clauses being met (if applicable).

 

Red Flags To Be Mitigated Against

Even late in the game, deals can wobble or fall apart. Common pitfalls include -

  • Delays in providing due diligence materials or answers

  • Letting business performance dip (“I’m out anyway”)

  • Surprising the buyer with late disclosures (e.g. debt, supplier changes)

  • Withdrawing emotionally, making communication difficult

  • Announcing the sale publicly before conditions are met

 

Sarah kept things tight. She acted like a conductor, keeping lawyers, accountants and buyers in sync so James didn’t have to.

“You focus on finishing well,” she told him. “I’ll keep the rest moving.”

 

Ideal Owner Mindset

This final phase requires clarity, calm, and commitment.

The ideal mindset -

  • Stays engaged, even after the contract is signed

  • Supports the team and the buyer through transition

  • Accepts emotions without letting them derail the process

  • Finishes with integrity - because legacy matters

 

James walked through the factory floor one last time the day before settlement. He shook hands. Shared stories. Didn’t rush.

And when he left the keys on Sarah’s desk, he didn’t feel broken. He felt… ready.

 

Key Takeaway - Exiting well means finishing well. Stay focused, stay steady, and hand over not just a business - but a legacy, with care.

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9. Negotiating the Deal – More Than Just the Price