Navigating the complexities of running a business often involves making tough decisions, including your business exit and succession planning options. One factor that could get overlooked is how to handle your employees. When rumours begin to circulate amongst your employees about a potential company sale, it can create uncertainty and anxiety within the team.
Jo Haigh, Founder and Chairman of fds, offers her advice on what you should do regarding your staff if you have been approached or are thinking about selling your business.
Prioritise Honesty With Your Business Exit
Honesty is the best policy. Not addressing rumours of the sale runs the risk of the rumour having an even bigger impact on the staff. As a consequence, staff may leave the business anyway. Suspicion and an underhanded approach can turn the company sale process much more unpleasant than was necessary. You can lose key staff who would have been prepared to stay with you.
Make an Effort to Retain Staff Relationships
You will need key staff members to help you through the challenging process towards the finish line. With regard to your accountant, your HR support, and any of the critical staff in your top team, these are the team members whom you should really bring to your confidence. You can manage the worries that they will have by putting incentive programs in place and assuring them that you will do everything you can to make sure their future is as safe as possible upon your business exit. Whether that be financially or in other ways, it depends on what matters to them and you. Prioritising staff wellbeing and succession planning will ensure a smoother leadership transition and reduce the risks when selling your business.
Finding the Right Business Broker
Skilled advisors can offer you valuable expertise and experience to ensure your business exit is a smooth transition for both you and your company.
fds has been selling businesses for 36 years and, with 400+ transactions under our belt, we have a plethora of mergers and acquisitions experience in a variety of industries. Learn more about selling your business and the services that fds can provide.