You are considering selling your business and, as is true for any entrepreneur, people are the capital you cannot do without. How and when do you tell staff that you are considering selling the business?
You want to keep them committed to the company as much as possible during the process. Both for yourself, the company and the potential buyer.
From practice, we offer some tips.
Labor market is and remains tight
So the personnel impact when sell a business should not be underestimated. Failure to carefully strategize with staff can seriously damage the sale proceeds or the permanence of your business. But what strategies are conceivable to keep staff involved?
Consider a pre-exit
By doing so, you are selling only part of the company to an investor or strategic buyer, while you yourself remain on as a director and shareholder. By staying on, you create a natural transition period in which employees can get used to the new situation, without "the top" changing for the time being.
Management buyout
If there is a good board or management team in place, it is worth exploring whether they are interested in a (partial) takeover of the business. This can sometimes be done independently with help from the owner or else together with an outside investor.
A bank is also sympathetic to facilitating this acquisition structure. Such a process is less disruptive to staff because familiar faces remain at the helm.
Employee participation
When it comes to employees, buyer and seller often have the same interest, namely that key personnel stay after the acquisition. If these employees have no ambition to become (risk-bearing) entrepreneurs, an employee participation can be considered. With this, you offer them the opportunity to benefit from the company's results with a limited equity stake.
For example, you can make 5-10% of the shares available to (certain) employees. This can increase engagement, leading to a win-win situation and thereby encouraging mutual loyalty.
Communications
First of all, change in ownership always leads to unrest among employees. The most important thing to point out here: communication, communication and communication. Again, don't underestimate the impact on staff! And think about strategy and communication with staff early on.
Are there suitable successors within the company? Are there employees who are crucial? Who will be informed at what point and why? And what will then be the message, because again, c'est le ton qui fait le musique.
Mirror your plan to confidants around you and discuss it with your concerned adviser. This will prevent you from unnecessarily losing your employees in all your enthusiasm and with the best of intentions.
