Change in the ownership or control of a business is a common occurrence, whether as a result of a family business being passed down from one generation to the next, a business owner retiring or looking for a new challenge, a management buy out or consolidation in the market to achieve economies of scale or other competitive advantage.
Regardless of the reason, a balance needs to be struck between the old and the new to achieve an effective handover and to allow the business to thrive under its new management or ownership.
In the excitement and stress of completing a deal, thoughts of the ongoing strategy or the day-to-day operations may not be front of mind. However, the transfer of information has a vital role in the success of the business going forward. Even where the incoming team or individuals are well-acquainted with some aspects of the business, there are likely to be elements which are unfamiliar or working relationships which need to be built.
Moving out
Those exiting should ensure that sufficient information is passed over, including data and documentation relating to the business which may be stored physically in a particular location, on a device, or in their heads. Whilst it can be an emotional strain to let go, it is important that the new stewards of the business have everything they need. A missing password can cause untold disruption! Some exiting owners spend time in their final weeks or months preparing a bible of useful information and contacts as a means of sharing their knowledge for when it might be needed.
Moving in
Those taking over would be well advised to consider what crucial information they are likely to need and to ask questions early in the process of handover whilst memories are still fresh and those leaving are engaged. Keeping the answers in a safe place for future reference may avoid panic at a later date! Where existing management are buying the business, they may feel that they are familiar with how the business works; however, they should be open to considering the impact of increased responsibility for matters in which they may not have had involvement previously.
In the in-between
There may be a transitional period where the individuals leaving remain available on a full time or part time basis to assist with a smooth handover. They may have industry contacts, built up over many years, who need to be introduced to the new owners and reassured about their future trading relationship. But there will also need to be a point at which those exiting step away and allow the incoming team to make the business their own.
Embracing change
The individuals on both sides should be prepared for the fact that the business is unlikely to be exactly the same in the future. Everyone has their own style of leadership and there will be changes in relationships and dynamics at the top. These can be hugely beneficial and allow the business to move in new directions, find new ways of working and develop for the better. It is also an opportunity to reflect on the culture in the workplace, how this is likely to be impacted and how the new management would like it to evolve in the future.
Above all, preparing one’s mind and being open to change can play a fundamental role in both the success of the business and the mental health of those involved. Talking to a trusted friend, colleague or advisor can make all the difference when journeying into the next stage, whatever that looks like.