Case Studies

Periodically, we highlight a different client solution.
We hope you find inspiration and tidbits of wisdom in these recaps that you can use in your own workplace. (For stories about personal transformation, visit our personal coaching website.)

Background

Our client’s mission is to nationally consolidate a service business that is currently operated regionally. This is a $3 – $4 billion dollar industry currently run by large regional players and family businesses doing $5 - $60 million dollars annually.

He and his partners are in negotiation with a $15M privately owned company in the Midwest. This would be the first purchase in a national industry consolidation. The regional company with whom they are negotiating provides an ideal platform for additional acquisitions.

Status

Initial acquisition identified. Financing secured. Negotiation proceeding. Pricing and terms agreed upon with business owner.

Challenge

Owner of the regional company keeps stalling. Additional delays could affect availability of funding.

Assessment

Our client believes he has addressed all of the issues raised by the company owner. He is frustrated that the acquisition is not moving forward.

The regional business owner’s objections are not clearly stated. He is still wavering, because he is “not sure this is right for him.” He says he is comfortable with his current lifestyle, and is uneasy about how that might change if he sells the company.

Solution

Clearly, the regional business owner was asking for something beyond money, prestige, and inclusion in the big-boy arena -- all of which our client had demonstrated he would gain through the sale.

Although the financial rewards were undeniable, lifestyle issues remained unaddressed and created a block for acceptance of the offer, enthusiasm for the collaboration, and alignment with the goals of the acquiring firm.

After a brief discussion of how the principles of Appreciative Inquiry and Positive Psychology might be applied to this problem, the coach suggested a line of questioning be posed to the regional business owner that would encourage him to:

• leave behind undefined misgivings,
• clearly state his desires, and
• envision a best-case scenario.

Then they role-played that conversation.

The questions went something like this:

• Let’s assume this collaboration proceeds and it exceeds your expectations. What would that look like?
• Can you walk me through an ideal day in your life, three years after the sale is completed?
• How many hours are you working?
• What other activities are you spending time on?
• What does the environment look like? Please give details. (Are you in an office, working remotely … Are you living in Greece on a boat … or going to the same office you are in now?)
• Who are you interfacing with and in what form?
• What are your most satisfying responsibilities?
• How has the sale of your company made your life better?

The Breakthrough

Our client reported the following results:

The regional business owner enjoyed the process. He physically relaxed; his facial expressions were open and jovial; and his language was light and playful in the response.

Our client felt this was a breakthrough: Instead of playing on different sides of the table, they were creating something positive together.

In addition, our client got a clear picture of what the regional business owner valued that had not yet been addressed in the offer and could focus on that.  It was as simple as, “Well that’s how we picture it too, Ned.”

Finally, our client believes this is the first time the regional business owner actually visualized himself working with them in a positive way.

The Closer

Putting the client in a positive emotional state and having him envision a positive outcome helped create the right environment to tackle the next obstacle: convincing him they could work together well. The regional business owner was used to being his own boss and running things his way.

As we had discussed in our coaching conversation, our client next shared some ideas the purchasing group had for building the business with him. This:

• engaged the regional business owner in collaborative planning,
• helped him visualize an exciting future he wanted to be a part of, and
• “previewed” what working together might be like.

As the client reported: “The entire energy level in the room changed. We were beyond negotiating and were full-steam into planning our future together. It was a rush.”

Current Status

We would love to report that this one meeting closed the deal.  But in the real world, contracts must be signed. There’s a little something called Due Diligence. We can report that they are no longer at a standstill, and the acquisition process is moving forward into the next phase.