The Power of Judging Character in Business: Why It Matters More Than Ever

In business, one invaluable yet often overlooked skill stands out—judging character. While resumes, credentials, and brand alignments are easily assessed on paper, the real value of an adviser, consultant, or coach lies beyond technical skills. It's their character, emotional intelligence, and integrity that often make the difference between a successful business transaction and a costly failure.

For business owners, entrepreneurs, small business operators, and start-ups, selecting the right adviser for high-stakes engagements like the confidential sale of their business is critical. At such a pivotal moment, the adviser's character can be the linchpin that drives a deal to completion while protecting the legacy of the business.

The Importance of Character

When searching for an adviser to handle the sale of your business, you’ll likely encounter many candidates with exceptional resumes boasting years of experience and an impressive array of credentials. However, selling a business isn’t just a transaction on paper—it's an emotional, personal, and often complex process. Beyond technical expertise, the relationship you cultivate with your adviser, built on trust, respect, and mutual understanding, plays a crucial role in achieving the best outcome.

An adviser's character can significantly impact how the process unfolds. In an industry where people skills and discretion are paramount, good character manifests as honesty, empathy, and the ability to foster trust. A strong, character-driven adviser will guide you not just through the practicalities of selling but also through the emotional highs and lows, keeping your personal and professional interests safeguarded throughout the process.

Emotional Intelligence: The Cornerstone of Good Character

Character is often synonymous with emotional intelligence (EI). Advisers with high emotional intelligence possess the ability to not only regulate their own emotions but also understand and respond empathetically to yours. This is invaluable in high-pressure situations, such as negotiating deals, resolving disputes, and managing the flow of confidential information.

A high-EI adviser remains calm and composed when stress levels are at their peak. Their ability to think clearly under pressure, communicate effectively, and offer nuanced guidance often sets them apart from those who rely solely on technical skills. More importantly, such advisers provide the emotional support that business owners frequently need but may not always realise they require.

The Role of Experience: Balancing Character and Competence

While character and emotional intelligence are critical, they must be supported by a wealth of experience. Experience enables an adviser to anticipate challenges, identify risks, and navigate the unexpected hurdles that arise during the sale of a business. An experienced adviser with strong character is able to draw on previous encounters with similar situations to provide advice that is not only technically sound but also sensitive to the unique needs of the seller.

Experience and character together form a dynamic combination. An adviser who possesses both can offer insightful strategies, guide decision-making with a steady hand, and help business owners avoid costly mistakes. This well-rounded approach provides the peace of mind business owners need when embarking on a potentially life-changing transaction.

How to Select the Right Adviser

Choosing the right adviser requires looking beyond just their credentials. Here's a more comprehensive approach:

1. Assess Their Credentials and Track Record

• Start with the basics—evaluate their technical skills, qualifications, and experience. Look at their history of completed deals, especially those that are similar to yours. This gives you a baseline understanding of their capability.

  
  

1. Judge Their Character

• Character reveals itself over time, but you can begin to assess it during initial meetings. Observe how they communicate, handle tough questions, and interact with you and others. Are they respectful? Do they listen carefully, or are they more focused on speaking? Are they transparent about potential challenges? These subtle cues are often indicators of an adviser’s character and their suitability for guiding you through a business sale.
  

1. Evaluate Emotional Compatibility

• Selling a business requires a deep, ongoing collaboration over an extended period. You will be sharing personal information and relying on your adviser’s judgement during stressful moments. Consider whether their style aligns with your own, and whether they truly understand your unique challenges and pressures.
  

1. Seek References and Testimonials

• Asking for references from previous clients is crucial. These insights from those who have worked with the adviser before can provide a clearer picture of how they operate in real-world situations. Don’t hesitate to ask direct questions about how the adviser managed the emotional and relational aspects of the deal as well as their technical skills.
  

The Adviser’s Impact on Your Business Sale

The process of selling a business involves far more than just securing the highest possible price. It’s about finding a buyer who will respect and continue the legacy you’ve built. This is where an adviser with strong character and emotional intelligence makes a profound difference. They can:

• Facilitate Trust: Trust is the foundation of any deal. Advisers with strong character can build trust with both the seller and potential buyers, making the negotiation process smoother and more transparent.
  

• Manage Expectations: Misaligned expectations are a common cause of failed negotiations. A skilled adviser helps both parties set realistic expectations, minimising the chances of conflict down the line.
  

• Provide Emotional Support: Selling a business is an emotional journey, often filled with anxiety, doubt, and attachment. A character-driven adviser acts as a steadying force, providing guidance and emotional support through every twist and turn.
  

Conclusion: Judging Character is Key to Success

In a world, where data, credentials, and financials often dominate the conversation, the human element is easily forgotten. Yet, the character of your adviser can have a profound impact on the success of your business endeavours, particularly when it comes to sensitive, high-stakes transactions like selling a business.

Selecting the right adviser is about striking a balance between competence and character. Choose someone who not only has the technical skills and qualifications but also the emotional intelligence and integrity to truly support and guide you through the process. After all, it’s this combination that adds real value and ensures a successful, confidential sale of your business.

If you're at crossroads and considering selling all or part of your business, make sure to prioritise character as much as credentials in your search for a suitable exit adviser. In the end, it’s their character combined with good experience that will make the difference between a smooth, rewarding exit and a potentially fraught experience. Your business and its legacy deserve nothing less.

Talk to one of our advisers in confidence and judge for yourself.

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