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DIVEST MERGE ACQUIRE
Focus on business
A time to sell is a time to be open
CHRIS MITCHELL looks at the question of how and when you should tell your employees
you are selling the business
ONE of the first things business owners worry
about after deciding to sell their business is
how and when to tell their employees.
How this is handled can dramatically effect
the outcome for everyone. Getting this right
can set up a smooth process and great outcome. Getting it wrong may not only derail the
sale process, but also the business! Business
owners can become paralysed by fear over the
consequences of telling anyone they are selling
their business, especially their staff.
Firstly, owners should realise there’s nothing
wrong with selling. Everyone does it eventually, even their suppliers and customers will
sell at some stage.
While owners may try to keep it secret, the
reality is that 90 per cent of communication
is non-verbal, so they will probably tell staff
anyway without realising it. Rumours are
Emphasise the positives and
what is coming into the business,
rather than what or who may be
leaving.
usually running through every industry all the
time, and it is only when the rumour about you
and your business is true, that you may react
noticeably differently.
While staff may be concerned about losing their jobs, what usually happens is that
most or all staff are going to be retained by
the new owners after the sale and buyers are
more concerned about losing the staff. Buyers
will be more comfortable if key staff already
know about the sale and will usually require
the sale to be conditional on meeting key staff
and getting confirmation they will stay on.
You do need to tell your key staff at some
stage – not only are they your eventual ticket
out of your business, but they can also help
you through the sale process.
This can be either before the process starts,
before marketing starts or, at the latest, during
the due diligence process.
It shouldn’t really matter when you tell your
key staff, provided you tell them in the right
way. The last thing you would say is “the
business is on the market. I am selling up and
am getting out of here”.
That could trigger mass panic and have
everyone running for the door. Instead, something just as true but much more constructive
would be:
“We are thinking of bringing in new investors who will invest capital to grow the business more quickly. I will be staying on for
the time being and will still be involved in
the overall management, so it is likely to be
business as usual or better.”
Emphasise the positives and what is coming
into the business, rather than that what or who
may be leaving it. Having a new owner with
big plans should be good for the business and
those working in it.
Business Sales & Acquisitions Tasmania
Business Sales & Acquisitions Tasmania
Divest Merge Acquire is a market leader delivering exceptional results
Divest Merge Acquire is a market leader delivering exceptional results
in the sale and acquisition of medium and large Australian businesses.
in the sale and acquisition of medium and large Australian businesses.
•
M&A Transaction Advisory firm
M&A Transaction
Advisory firm
•
and Acquisitions to medium and large enterprises
Mergers andMergers
Acquisitions
to medium and large enterprises
•
National organisation
National Organisation
•
17 offices and member firms in Australia
18 offices and
member firms in Australia
•
Advises on clients' businesses with EVs $1M - $100M
Advises on clients’
businesses with EV’s $1M - $100M
•
AFSL and Business Sales licenses
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Confidential Discussion
Discussion
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CHRIS MITCHELL
DEANCHRIS
DEMEYER
MITCHELL CA BBus
CA BBus
CA BBus
0448
0448 887 398
0437 733
811887 398
chris.mitchell@divestma.com
dean.demeyer@divestma.com
chris.mitchell@divestma.com
divestmergeacquire.com | 1800 700 111
TASMANIAN BUSINESS REPORTER, March 2023 21