The Maui Effect: Why business owners lose focus before the finish line

"This article was originally published on Forbes.com on March 23, 2026. Read the original here." 
 
Selling a business is often the culmination of years—sometimes decades—of hard work. But for many business owners, the moment they decide to sell, something shifts. They start imagining life after the deal: the beach in Maui, the freedom, the next big adventure. This mental leap into “what’s next” is what I call The Maui Effect—and it can be a serious problem. Read on to learn why. 

What is The Maui Effect? 

The Maui Effect happens when a business owner becomes mentally preoccupied with post-sale life before the transaction is complete. Instead of focusing on running the business, they start daydreaming about the next chapter of life. This can manifest as anything from mild distraction to full-on fatigue. 

Why it’s dangerous 

While understandable, this mindset can derail the very outcome that business owners are working toward. The Maui Effect can: 

Impact the future of the business

There may be a reluctance to take on risk, explore new ventures or initiatives, or invest in building, scaling or cementing current successes—all of which are important to business continuity and longevity. 

Increase deal risk

Buyers notice when the owner seems to be checked out. Even if performance remains relatively strong, the owner’s attitude can affect buyer confidence and make it harder to sell the business.

Affect transaction terms and valuation

When leadership disengages, operations suffer, and business numbers slip—and so does valuation. Even a slight blip or decline in month-over-month financials can represent a change in the original picture that was painted for the buyer, which can affect trust and even trigger a change in purchase price and terms. 

Cause team uncertainty

Employees can also sense distraction, which can cause morale and productivity to decline—and may even trigger job searches or drive employees to pursue their own entrepreneurial dreams. 

Signs you are experiencing The Maui Effect 

What should business owners be on the lookout for? Here are some key signs to look for in both yourself and your business: 

• You spend more time talking about retirement plans than quarterly goals. 

• Strategic decisions feel less urgent because “the sale is coming.” 

• You hesitate to invest in long-term improvements and instead prioritize short-term boosts. 

• You are spending more and more time away from the business and feel “checked out” from the day-to-day. 

• The business is performing at an all-time high—in other words, you have reached your current growth ceiling—and you can’t imagine anything further. 

The consequences 

Having outlined why the Maui Effect can be dangerous, it’s worth exploring what those impacts actually are. Here are a few scenarios: 

Due to declining performance, the business gets a lower valuation and eventual sale price

Although this may not seem like the end of the world (after all, the deal still went through! A lot of money was made!), a business sale is a key stage that sets the foundation for the rest of an owner’s life. In some cases, variances in sale price could mean millions of dollars forfeited or left on the table.

The timeline for the sale is extended as the buyer demands stability and pushes out due diligence

Transactions are often multi-month (think nine to 18 as a typical range) and sometimes multiyear affairs, so deal fatigue is a real phenomenon. If you’re experiencing the Maui Effect before you even start, just think of how it will feel six to nine or 18 months in.

There is a change in deal terms and forms of consideration

Which opens up more risk to you as the seller. We like to say that cash is king on close, but that might not end up being an option if results are deteriorating. 

The deal eventually falls through and fails

A sale is a hard thing to keep under wraps, and it puts pressure on everyone involved. Imagine going through the entire process but without the close and eventual payoff. Competitors, advisors, customers and staff finding out about the failure can also jeopardize both business and personal reputations, as well as future deal options.

How to avoid it 

So, how do you stave off the negative consequences of the Maui Effect? Here are some tips: 

• Stay disciplined: Treat the sale process like a critical project—your focus matters until the ink is dry and cash is in the bank. 

• Set operational milestones: Keep KPIs front and center throughout the process. 

• Delegate wisely: Empower your leadership team to maintain operational momentum. 

• Engage advisors: Let professionals handle the bulk of the transaction so you can stay focused on operations and running the business. 

• Sell while you are on the up: This applies to both mindset and business performance. The best time to sell is often when momentum and performance are increasing, and you have lots of energy to put into the business, not when you have hit your peak and are starting to slow down. A few promising years tend to look better on paper than a record year followed by a slight decline, even if that decline is reflecting “business as usual.” 

• Be realistic: Deals can take many months or even years, and the deal terms may even require you to stay on after the sale to help transition. You need fuel in the tank to get it done properly and completely. 

Final thought 

For an owner who is looking to sell, the Maui Effect is normal and understandable—but unless managed, it can be costly. The best way to get to Maui is to keep your eyes on operations until the ball crosses the goal line. Stay engaged, protect your value and purchase price, and make sure your dream doesn’t become the distraction that derails the transaction. 

The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.