Your Successful Business Transaction – Telling your Employees
Selling your business is a confidential process. Have you considered during the process the future of your employees and their reaction of the business having a new owner? Disclosing information as you start your exit strategy can do harm during the process and jeopardize a successful transaction. So how and when do you tell your employees? Forbes.com had a good article giving some tips on preparing your employees for the sale of your business.
- Wait until the deal is completed.
It is best to wait until the papers are signed and the deal is final before telling the employees. Telling them too soon could decrease the value of of your business. Losing a employee can be detrimental to the value of your business and the sale of your business.
- Tell your closest associates first.
Before disclosing information to all your employees, you want to make sure your closest and highest ranked associates know your exit plan. These employees will be developing close relationships with the new owner if they decide to stay.
- Plan accordingly in telling your employees.
Each employee will react differently to the news so it is important to be as compassionate as possible when telling them you will be leaving and a new owner is taking your place. Employees need to know their jobs are secure once a new owner takes over. Make sure to introduce the new owner to your employees after you break the news.
The way you’ve handled your business is unique and unlike any other will do so it is important to find a buyer that is the right fit for the business you’ve built.
To read the full article ‘How to Tell Your Employees You’ve Sold the Business‘
Successful Transaction of this Electronic Component Distribution Business
After 11 months of searching for the right buyer, this Wisconsin distributor of passive electro-mechanical component parts has been SOLD! The owner of this business was ready to retire and called Lakes Business Group to help with the sale of his business.
As one of the Midwest’s premier distributor of switches, connectors, and terminal blocks and more, the business has been performing well financially and has several areas where a new owner can grow and expand the operations to make the business even more profitable.
Congratulations to the seller on his retirement and to the new owner on his new opportunity to build this established company. Also congratulations to our team for assisting in this successful transaction.