How to Let Your Employees Know That You’re Selling the Business
Every business owner should consider how his/her personnel will react to the sale of the company while also making confidentiality a priority.
You have decided to find a successor for your business. You know what to do moving forward and have an exit strategy in place, but have you thought about the reaction of your employees? Every business owner should consider how his/her personnel will react to the sale of the company while also making confidentiality a priority. Revealing information in the first stages could affect you significantly in the future, so when should you tell your employees about the transition and how to go about it? There are a few moving parts to consider when notifying your team. Selling your business might be your main priority at the time, but don’t lose focus on your business duties and maintaining relationships with your employees. Revealing too much information can risk the success of the deal. Below are a few tips on how to prepare your team for the sale of the business.
Disclose Information to Your Highest-Ranked Associates First
Before revealing any news to your company, you want to make sure that your closest advisors know of your plans first and foremost. Ensure that your senior-most employees feel involved and make sure to maintain trust with them so that they know the business will be left to a trusted buyer. Keeping them informed concerning potential changes that might alter the dynamics of the company is necessary. Begin by weighing out options and give them confidence in being a crucial employee. Your top employees will be developing close relationships with the new owner if they decide to stay, so it is vital to prepare them adequately for the sale. If these employees decide to leave, it could be detrimental to the sale of the company.
Make Sure to Wait Until the Deal is Complete
It is crucial to notify your employees of the sale after it has been set in stone. Disclosing information while the transaction is being processed could jeopardize the status of your employees and could even risk the relationship with your clients. Disclosing this information to your team too soon could also decrease the value of your business. If the successor is found out about in the first stages, employees will develop questions and could easily become anxious about the future of their career within the company. The worst situation to be in is creating a panic while you are still managing the everyday aspects of your business. Losing important members of your team can be damaging in valuing your business and finding a suitable buyer to take over.
Plan Strategically in Notifying Your Remaining Personnel
It is vital to be considerate as possible when disclosing to the rest of your staff that a new owner will be filling your shoes. Every individual employee will react differently to the change, so it is necessary to be understanding of feelings associated with the future circumstances. Encouraging your employees to continue prospering and growing in their careers can significantly improve their attitudes. Giving your employees the confidence that they will be respected by the new owner will stabilize the company while keeping minds at ease. Employees need to know that they will be secure once the company has changed hands. Introduce the new owner of the business to your employees after you inform them of the news- emotions will most likely be running high. Always make sure that the buyer of your business is a suitable fit for associates. This will ensure that your employees will be comfortable with a new owner and that the culture of the company will remain. Understand that the ways of running your business are unique and unlike any other- so it is ideal to find a buyer that is a suitable fit for the company.
Selling your business can be stressful, but with the help of a reputable business broker, it can play out smoothly. Viking Mergers & Acquisitions is here to help you plan your exit strategy and find the perfect buyer to take over your business. Contact us today for a free valuation and see our active listings for sale.