Once you are in the market for a business for sale, you will find there are a lot of questions from your business advisor. Your buyer’s representative will be working to find the right business for your purchase as well as to ensure your best interests are met before, during and after the sale.
For new business owners in Duluth, MN, thinking ahead to the transition between the old owner and your new ownership may not be a major consideration. However, your business advisor will typically make this one of his or her first questions as it will be essential in the ongoing success of the business.
Family Owned Business Purchases
If you are considering a family owned business for sale, you will typically find that family is in the leadership positions within the business. This may not include all upper-level management, but it may include the majority of the positions.
When the family has built the business from the ground up and it is their name that has the reputation with customers and vendors, having those upper managements family members stay on during the transition in ownership and for a specified period after the sale will often be critical.
For some types of businesses for sale, this transition period can be relatively short. This is often the case if you have experience in the industry and the employees and management teams are staying on with the business. For situations where the family has been extensively involved in the day to day operation, this transition period can be months to years. This can all be part of the negotiations around the sale and transition.
Bringing in Your Team
Even if you are planning on replacing the existing teams, having the time to get your team in place and have them train with the current employee group will be essential in most businesses.
This may include more involved types of negotiations around the sale. It may include having agreements with the key staff from the current company that are identified as providing essential services for the business.
Having a cushion to not only hire but to train the new staff can be a make or break deal for a sale. Your Duluth, MN buyer’s broker will have advice and ideas on how to incorporate these types of agreements into the sale to provide protection for your business as it transitions to your new leadership and business model.
