When planning your exit strategy, you must never overlook the value of your day-to-day operations and the employees that manage it. When in transition, your operational team must have the capacity and expertise to keep your business moving, even with potential new ownership looming. Having a trusted and capable team creates a straightforward path for a potential new owner to step into. Maintaining your operational team in transition will help to retain customers, optimize workflow, and secure current supply chain relationships.
When planning to sell your business, transferring responsibilities to employees is key. They need to be challenged and tested in day-to-day activities, feel comfortable in their decision-making and be loyal to the company. This will be helpful in negotiating the price and terms of the sale.
Long term or Legacy employees sometimes have trouble with the transition to the new ownership, and loyalty can be questioned. This can be especially true in family owned / local small businesses. The best plan is to honestly communicate the situation to employees so that they know what to expect during this new phase of the company.
If the seller wants to continue the company’s legacy, selecting the right choice for a buyer is just as important as, if not more important than the price.
Is your team prepared to lead? What type of buyer do you want to take over your company? These are both questions that must be addressed before attempting an exit.
