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When and How to tell your Employees you have sold your Business?

Selling a business is a hectic task and sellers get so caught up in the hassle of it all that they forget about how the employees will take the news. Selling your business might be the only thing you are focusing on, but don’t lose sight of your day-to-day business and your relationship with your employees. It is hard to predict how the employees will react to the deal and how it might affect the business. Here are some tips on how to tell your team about the sale of your business:
1. Tell them after the Deal is closed: It is always best to tell your employees about the sale after the deal has been finalized. If you disclose the information while the deal is not finalized, you could jeopardize the deal, the status of your employees and relationships with your clients.
2. Timing: You should tell your employees immediately after the deal is finalized. Don’t wait for too long and tell them before they learn about it on the internet or somewhere else. Tell them why you have sold the business as well, to help them understand.
3. Tell Key Employees First: Let the key employees and managers in the business know about the deal first. Just let them know how important it is not to discuss the deal with other employees.
4. Let them know Specifics: Tell them the specifics when it’s time. Let the employees know how their employee contracts will be affected by the sale and how many of them have been retained by the new owners if any.
5. Provide Support: For those employees who will no longer be a part of the business, offer them letters of recommendation. You might need to pay them compensation as well. Employees have rights and you will need to meet them after termination.
If you are interested in buying a website business or want to sell a website business, contact ecommerce M&A broker, ValleyBiggs today for information on how you can get a free consultation. Call 800-980-4145 to find out what this M&A advisory firm can do for you.

Published on: October 3rd, 2018