As a small business owner, nothing is more rewarding than being recognized by the bigger players and eventually being acquired by them. Parting ways with your business isn’t all that heartbreaking, knowing that it will be handled by an experienced team of managers. They can take your business to new heights, making it on par with the leading brands on the market.
After making your deal with a reputable business broker in Salt Lake City or any other location, what happens to your employees? Surely, the new company has their own set of managers and employees, too. Does that mean bad news for yours?
You can rest assured that your employees won’t be kicked out of the company once the new management takes over. Though a number of them will become a redundant part of the organization, no one is getting terminated; instead, they may be transferred to a new position if a cut back will be necessary.
It isn’t advisable for business owners to divulge the news of acquisition to their employees right away. It would only put them on edge, making them inevitably anxious that their jobs will be at stake. Worse, a lot of them may consider turning in their resignations. If your buyer finds this out, the deal could be at risk.
When the right time for the announcement comes, gather your best employees and make them commit to staying with the company despite the new top management. Ensure that they will receive incentives for staying, and also advise that they don’t spread the news to their own teams right away.
Now, when the new owner finally takes over, every employee, including the ones from the new company, will undergo a transition stage. It will be a period of silence while a ton of hard work is being done. The new owner will be studying the company, and make decisions on how to make it prosper.
In this stage, communication between the management and employees is highly important. The acquiring company’s managers should also be willing to address the concerns of their new employees. This is how they can assure your employees that their jobs will remain.
The acquiring company will be most concerned about the financial aspects of your business, and one way they can reduce expenses is through cutting down on salaries and wages.
While terminating employees isn’t part of a business acquisition deal, do your homework early on. Review your headcount, evaluate your employees, and only select the best-performing ones to stay. The new owner will also be doing this in their company to avoid plenty of staff redundancies, and of course, to cut costs.
Make sure to prepare for this in advance, before your employees are aware of the acquisition. This is to ensure that everything will go on smoothly and that your sale contract will be clear regarding bonuses for your employees that will stay.
What Should Employees Do?
Considering that the redundant posts will be at risk the most, what they can do is to treat the acquisition as a chance to show off their other skills. This is a time for them to remain professional, as the new owner will get to know them and assess their skills.
If you’re an employee of a small business that will be acquired soon, reflect now on why you’re working for that company. Is it to support your living, support your growth, or to emphasize your purpose? Analyze your reason for working and weigh your options of staying or leaving.
If you decide to stay, don’t treat your workplace as a jungle or compete with your new co-workers. Establish camaraderie with them and try to help each other with the transition. One of the best things you can do is to prove that you’re an asset to the company and that you’re not afraid to embrace changes.
As an entrepreneur who’s been considering an acquisition, take note of all of these things and start evaluating your employees as soon as possible. Doing so will help you push through with the deal seamlessly.