Change of ownership notification in the U.K.

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February 03, 2025

by a searcher from Loughborough University - School of Business and Economics in Cambridge, UK

Hi Everyone,
I’m about to close on a £200k SDE manufacturing business in the U.K. and will become the owner and MD. I’m in the process of drafting letters to customers and suppliers informing them of the change. Does anyone have a template or guidance on what to say and what not to say. The current owner will be staying on as a consulting for 6 months to allow for a smooth transition and give me time to get fully up to speed with running the company and industry.
Any thoughts or advice would be appreciated

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Reply by a searcher
from Cranfield University in London, UK
thanks ^redacted‌ for the mention, can't believe this is the first question on this subject. ^redacted‌ you may wish to keep the current directors as directors at companies house for a short period of time - a complete change of ownership and resignation of directors triggers the credit agency to change your ratings which may affect your rating for suppliers and customers. Just make sure there a stipulation in the SPA that they will resign within x months. I would certainly try and visit any key customers and suppliers with the outgoing team before they leave, and for the rest a well-worded letter, confirming the same commitment to service etc will likely suffice ‌
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Reply by an investor
from University of Manchester in Manchester, UK
Congrats Sam.

If the business is heavily reliant on 3-5 customers that make up the majority of the revenue (like many manufacturers), you should check if there are any change of control provisions in any contracts that may be in place. If there aren't any contracts, I suspect the Seller will have a close relationship with the main customers so may be best to get introduced in person by them, rather than sending a formal letter.

As for the smaller customers and suppliers, a generic notice is generally fine
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