As an advisor, you have the unique privilege of walking alongside your clients through their most significant life events—the highs and the lows. You’ve supported them through moments of grief, celebrated weddings, welcomed new life and guided them through selling their businesses. Yet, when sharing your own monumental news—selling your business—you may grapple with a profound fear of client reactions.
The anxiety surrounding this announcement can feel heavy because it is something they have never done before. Many founders dread this moment, worrying about how their clients will respond. After navigating the arduous journey of selecting the right partner, enduring due diligence and surviving legal negotiations, revealing the sale can feel overwhelming. It’s tempting to approach this conversation with a detailed list of reasons why the sale benefits clients, but this can often feel transactional and impersonal.
Flip the Script: Celebrate the Journey
Instead, flip the script and start from a place of celebration. As you’ve cheered for your clients during their biggest milestones, you can invite them to celebrate your once-in-a-lifetime event. This moment is not just about the business; it’s about the relationships you’ve built and the trust you’ve fostered over the years.
You may struggle with accepting praise and might rush through this step, focusing solely on client benefits. However, it’s crucial to create space for your clients to pause and share in the excitement of this news. This is a unique opportunity to deepen connections and reinforce the bond you share with your clients.
Founders who have navigated their own M&A journey often describe the client communication process as a uniquely validating experience. During these conversations, clients frequently express the profound impact the founder has had on their families over the years, sharing what they truly appreciate about working together. This exchange not only reinforces the strength of the relationship but also allows clients to celebrate their successes and the journey they’ve shared. It’s a powerful reminder of the meaningful connections built and the positive influence founders have on their clients’ lives.
The Heart of the Matter: Client Concerns
Remember that your clients care deeply about you as their advisor when delivering the news. Their primary concern will likely be whether they can continue to work with the trusted professional they’ve come to rely on. They want reassurance that you will still be there for them, ready to support them through life’s challenges.
Consider this analogy: If a doctor asked a patient whether they would prefer their doctor to battle insurance issues or spend more time caring for them, the answer is clear. Patients want their doctors focused on their well-being. Similarly, your clients desire assurance that, despite the changes, you will remain dedicated to their needs and concerns.
Ultimately, this is a relationship business. Your clients value the time and energy you invest in their and their families’ financial futures. By partnering with a new firm, you’re not only preserving your energy but also enhancing your ability to focus on what truly matters—your clients’ well-being.
Look at the Data: Clients are Sticky
While it is natural for founders to feel nervous about communicating changes to their clients, it is important to remember how sticky wealth management clients are. Look at the data to build confidence going into those conversations. The retention of wealth management clients is at the north of 95%. The high retention stems from advisors’ deep connections with their clients. This further reinforces that this is a relationship-centered business. Nearly every merger and acquisition deal includes a client retention component, with buyers typically assuming this will be fully realized, given the industry’s high retention rates. Understanding these dynamics can provide reassurance to founders navigating transitions.
Embrace the Celebration
As you prepare to share the news of your business sale, embrace the celebration. Allow your clients to join you in this exciting chapter. By fostering an environment of trust and connection, you can alleviate their fears and reinforce the bond that has brought you together. This moment is not just a transition; it’s a chance to deepen relationships and pave the way for a bright future for you and your clients.
Emily Blue is a co-founder of Hue Partners.
