In the case that a new manager will have to be paid while learning the ins and outs of the business under the tutelage of the owners, how have you structured compensation for current owners who are staying on for a 6 months full-time transition period.
Post Acquisition Transition Period
by a searcher
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Months 1-2 post acquisition: Full-Time (defined as 32 hours per week)
Months 3-4 post acquisition: Part-Time (defined as 16 hours per week)
Months 5-6 post acquisition: On-Call (no specific hours but available to answer emails/phone calls
In the end we mutually agreed to end the consulting agreement with 1 owner after month 2 and the other owner after month 4. In my situation, I found that post closing working can be an emotional topic for the owners as they had put their lives into the business and needed a transition plan. Overall having the owners involved post closing is a delicate balance because they provide tremendous value in terms of experience, know-how, and introductions but it can cause some tense moments as they can struggle to fully understand that they are no longer the owners.
Happy to provide more details if interested.