When considering to sell your business, employment-related question is when to let your employees know. Many consider this to be cautious as if employees know about the major changes in the business, it may affect their work ethic and have other knock-on effects. In order to not undermine your exit plans, you must learn how to sell a business without anybody knowing. There are outlines set out below that consider the reasons for selling your businesses discretely and how to sell your business discreetly.
Why sell your business discretely?
There are several reasons to this, the most essential is the effect of staff. If your employees are made aware of the business sale, they may lose motivation or staff morale. This can cause poor performance affecting the business reputation. This can affect sales which in theory can affect your exit plans.
Another reason includes employees fearing for their pay, dismissals and work conditions. This forces many employees to quit without sufficient notice. It is therefore important when selling a business to ensure your staff feel worth sticking with you as their employer and to refrain from hinting there will be a change in leadership. In some cases, employees may even try to sabotage the sale. This again, can have knock on effects including competitors being made aware which can affect the business.
Should you inform your employees after the point of sale?
It is considered the best time to make your employees aware of the sale is when the deal is done. By doing so, all the potential issues discussed above will be dealt with. Just before closing, it is important for the new buyers to meet the employees to impress and reassure them enabling any enquires are dealt with if possible.
Talking to staff after the sale
When the deal is closed, most dangers are considered to be over. However, if still not told, the employees should be made aware as it is classed as being unethical if not. Again, if not done, a meeting between the new owners and employees should be made.
Monarch Solicitors specialist Business Sales Solicitors provide a tailor-made approach to your needs and give professional, practical and cost-effective advice to your intended proceedings. Please contact us by either calling 0330 127 8888 or emailing [email protected] for an initial consultation.
