YouTube link – https://youtu.be/vh_XLk25kO8 Selling a business should be very confidential for several reasons. With so much going on what do you tell the employees when selling a business. You don’t want your vendors to find out that you are selling your business as they will feel that the business may be failing. As a business owner you don’t want your clients to know as they may feel that they won’t get the same level of service and won’t see the familiar face. You don’t want your competitors to find out that you are selling your business as they can use this information as leverage to steal your clients. And you definitely don’t want your employees to find out that you are selling as they may feel compelled to start looking for a job at a different company.
They may feel uncertain about the new owner and his or her plans to run the company. They will start to think that they don’t have a job security anymore. The best route to take is to let your employees know right after the closing and introduce the new owner. This reduces the risk of anxiety and worry from your employees.
Until then it should be business as usual. There are cases where the key employees of the company who are aware of daily operations, like a senior level managers. This should be done in a very methodical and careful manner by explaining in detail the reason of the sale as not to create panic.
We at GillAgency also encourage our clients to provide a 30-day transition, which will help smooth things over and build trust with the new owner and the employees. If the previous seller is being requested to stay on past the initial 30 days, with compensation, that is even better for the employees.
As always you can contact us for more helpful tips at https://gillagency.co/contact-us