Transitioning a business from the seller to the buyer can be a complicated process. However, there are steps that you can take to make the transfer go more smoothly. The following tips may help:
- Meet with the buyer or seller.
Whether you are a buyer or a seller, there is a lot of value in meeting with the other party before and after the closing. As a buyer, you can pick the seller’s brain about anything and everything regarding the business. For example, you may want to discuss particular business products or services that the seller offered in the past. What has the seller tried that worked well or did not work well?
As a buyer, it is a good idea to get as much information out of the seller as you can to make your venture successful.
As a seller, sharing your knowledge can make the transition easier. Knowing that you are selling your business to someone who is going to invest the time and effort to make it successful can ease worries you may have about imparting your business to someone else.
- Consider incorporating training or an overlap period.
Merely meeting with the seller will probably not allow you enough time to learn everything you need to know about the business. Setting up a training session to learn more may be a good idea. Keep in mind that this type of training may take a considerable amount of time. Try to account for training in your negotiations.
An overlap period where the seller continues to work as usual and train new staff may also be a viable option. Learning while on the job is often much more efficient than simply discussing day-to-day operations.
- Contact existing clients.
If your new business has existing regular clients, it may be a good idea to reach out to them to introduce yourself and let them know about the ownership changing to you. A letter or even a personal phone call can be extremely effective, particularly if you are concerned about losing their business due to the ownership change.
- Make efforts to get to know employees.
Your new employees may worry about the future of their job or what changes they will be seeing in their daily work life because of the new ownership. Depending on the situation, it may be a good idea to meet with employees you are going to keep in order to introduce yourself and discuss their concerns on a personal level.
Of course, in large corporations, executing this tip may not be possible. Instead, it may be enough to encourage employees to come to you or their supervisors with concerns about the transitionary period.
- Get help from a professional.
You may not be able to avoid every bump in the transition, but having a professional help you with this process can be extremely beneficial. Here at Integrated General Counsel, we are happy to serve as external legal counsel to your business, whether you’re in the transition phase or past it. Contact us to learn more about how we help business sales easier for you.
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