Buying a business - telling the staff!

[apeebles]

Hi,

I am currently in the process of buying a business. We have exchanged contracts etc but have not told the staff yet. This will be done in the next couple of weeks and I was wondering if anyone else has gone through this process. I am especially interested in what kind of questions should I expect and what should I be telling them.

Thanks

Alistair

 

[gj]

The important thing is to be honest with them - there is likley to be an elemnet of mistrust of anyone buying the business, so you shouldn't add to it in anyway.

Their obvious concerns will be whether there will be any significant changes to the way the business is run - staffing levels in particular - roles - etc. Clients of mine who have had the smoothest transition when buying a business are those who have found out who does what, so that they are not then having to ask the staff what they do, which can look as though you have bought the business with no concern for the staff.

All a bit general, but hope it helps


Graham

 

[BBWdressseller]

Hi,

I am currently in the process of buying a business. We have exchanged contracts etc but have not told the staff yet. This will be done in the next couple of weeks and I was wondering if anyone else has gone through this process. I am especially interested in what kind of questions should I expect and what should I be telling them.

Thanks

Alistair

People hate change and uncertainty, so you need to reassure your staff very quickly that their jobs, terms and conditions are safe (that No.1). Recognise that there might be rumours, but that you would like them to give you the benefit of the doubt and if necessary ask you.

You've bought the business because of the staff, otherwise you would have started up on your own, and hopefully they will be able to grow along with the business.

Say that you will make mistakes and at times have to change your mind over some ideas you might have, but that you hope that they would be able to discuss any reservations they may have with you.

Talk to them about what their job is, what they like about it, and what they don't like about it.

Just don't be insular, get to know your staff as soon as possible, even before the deal is signed off, as rumours will fill the vacuum.


Good luck with the venture.

 

[kyber]

So tell us how it went. I have done this several times and been involved in lots of takeovers and M&A's (mergers and acquisitions) - some of them very unpleasant (but necessary for business success).

I think I have seen just about every way for management to mess up legally, to destroy all loyalty, and to completely undermine the very thing they were trying to achieve.

Stuart