While most business owners tend to spend years preparing the financial side of an exit, some never think through what life looks like once the deal actually closes. Joining us on the latest episode of Business Trends Today is Robert Laura, Co-Founder and CEO of the Retirement Coaches Association, an eight-time best-selling author who has spent more than 25 years studying the personal side of retirement and major life transitions.
During today’s conversation, Laura explains why succession and exit planning should account for purpose and identity alongside valuation and deal terms.
The crisis after the sale
With an estimated 10,000 baby boomers reaching retirement age every day, Laura contends that a large share of them struggle after leaving the workforce not because the deal itself fell short, but because they never planned for who they would be once the business was gone.
“You hear the statistic, 10,000 people are turning retirement age everyday… but I would say to your point, a lot of people are failing at it.”
He points to a pattern he calls “enmeshment,” in which owners meet many of their psychological needs through work simply because they feel important and needed there. But, once that structure disappears, the adjustment can hit harder than expected, particularly for owners who assumed the money alone would carry them through retirement.
That gap, he says, explains why some owners regret selling even after landing the exact price they wanted. According to Laura, many miss their teams and the sense of identity that came from running the company, especially once they are no longer known within their social circles as the owner of a business.
A positive psychology approach
Laura frames this through the lens of positive psychology, the study of what allows someone to thrive rather than simply have free time. Owners who exit without replacing their sense of purpose and social connection tend to struggle, while those who build those replacements ahead of time adjust more successfully.
Relationships also play a central role in that shift, since so many owner connections exist only because of the company itself. Laura encourages owners to build social ties outside the business well before a sale, noting that strong social connection is linked to greater longevity and better health, not just an easier retirement.
Practical steps for a successful transition
During the conversation, Laura recommends two exercises owners can practice well before a deal closes:
- The first involves keeping a running list of interests an owner is curious about pursuing, without any deadline attached.
- The second asks owners to write down what they might regret not doing in the next one, three or five years, then convert those items into concrete goals rather than waiting until retirement to act on them.
He also encourages involving a spouse in the process, since the transition reshapes the household as a whole.
Those exercises feed into what Laura describes as a written non-financial plan, a companion to the financial plan most owners already have in place. The Retirement Coaches Association walks clients through that process, helping them replace their work identity, stay socially connected and remain mentally and physically active after they step away.
Laura’s previous work, Retirement Intelligence: Personal Retirement Readiness, and 101 Retirement Lifestyle Questions, is now available as the company recently released the second edition of its training course, The Art and Science of Retirement Coaching. You can find more information at retirementcoaches.org and robertlaura.com.
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