What happens if the business sale falls apart?

(Editor’s note: John Ovrom is founder and CEO of Exit and Answers, a social community for entrepreneurs looking to sell their company. The story originally appeared on his blog.)
The process of selling your company is an emotional test.  A business is a living creature that ebbs and flows daily, subject to both internal and external influences.  The challenge is to successfully manage this creature through day-to-day operations while going through the selling process.
Most entrepreneurs have a love/hate relationship with their business and it’s that emotional passion that makes them so attached. The personal challenge that most business owners I now work with have is staying focused on the business until the day they close escrow.
My advice to them never wavers: If you are fortunate enough to get into escrow, then run your business as if the deal will not close:  Keep you mind on your business plan. Put a budget together for next year. Hire employees as required and do whatever you would do as if you were going to keep it.
It’s not a head game or manipulation, it’s self-preservation.  Most businesses don’t sell, even though many get into escrow, so it’s best to assume yours won’t either.   The reality is you have a better chance of closing by doing this than by pulling back and handing over the reins.
Escrows fall apart for all sorts of reasons.  Sometimes it’s financing or due diligence. Other times it’s market changes, seller remorse or the departure of key employees.  The problem is the seller often emotionally leaves the business once he or she gets a signed agreement.
The selling process is no time to sit back and think about what’s next.  Put your head down and give 100 percent to the selling effort. Save the time to reflect until after the game is over.
I’ve seen the effects of lost focus a number of times. One client I worked with spent a year planning with advisors and brought in a full team (CPA, financial planner, attorney, consultant) to make sure the transaction would be successful.  All went well, the business received a qualified offer and went into due diligence.
During that 4-month process, the owner decided to buy a house in another state for their retirement, starting taking longer vacations (weeks at a time) and turned the control over to key employees.
The employees, though, weren’t thrilled about the sale since they loved working for the current owner – and it turns out they weren’t capable of managing the business.  The buyer backed out and the owner was left with upset employees, a business with its volume down and a house in another state they couldn’t visit.  Then the market changed. They still own it today  – and it’s worth a lot less.
Another seller I know had an accepted offer in hand and only had to wait through a minimal due diligence review (one month, tops).  During that time the buyer would go by the store to talk to the seller, only to find it closed during the day – not just once or twice, but numerous times during regular store hours.  The seller was looking to move after the close and needed to do “personal things” to get ready.
The buyer, though, saw the store closed – and potential future customers walking away.  You can guess how it ended
The moral to the story is to assume your business will never sell – even if you have a deal in hand.  Ironically, you’ll then have a much better chance of selling it and reaping the rewards of your hard work.  Worst case: You’ll still have a good business and the future is bright.
Stay in the game until the check clears the bank. Then go out and celebrate.