Stress kills. It takes your life away...

May 26, 2024

by a professional from The University of Texas at Austin - Red McCombs School of Business in Austin, TX, USA

Stress is most draining AFTER you buy the business.

When you buy a business, the worst always happens.

I know someone who sold their business and didn’t tell the employees or clients that it was happening.

Half the staff disappeared on day one.

Most people don’t know they need to do transition planning to stop this.

Here are the 3 key steps to transition plan like a pro:

Come with a team

Teams take loads off of your back. Teams help. Teams do the things you can’t.

Teams make everything easier. Whether it’s freshman interns or veterans of the M&A process, get some. It’ll stop you from cutting corners.

Focus on people who’ve been through the process. It’ll help you avoid their mistakes.

Be personal

I’ve seen too many people come in with a ChatGPT opening-day speech. Their employees left.

Wonder why?

How do you feel when you get rejected from a job and it’s a generic email about how you weren’t a match?

You wouldn’t feel cared for.

Buying a business is the same. Employees want to feel safe and secure.

Take them to lunch individually, ask them questions, and IMPLEMENT THEIR FEEDBACK.

Show you listen.

Plan in advance

The only thing that beats stress and anxiety is knowing you’re prepared for anything.

Start planning the transition one month before closing.

This includes your script and key messages to share every day.

Plan things you didn’t think of - your housing, your backups, the food on your desk. Be specific.

Reply by a searcher
from University of Denver in Lone Tree, CO, USA

I would also add, setting expectations. The plan is key, and managing expectations of what they can expect the first 3 months, 6 months and full year help a lot in calming nerves. The catch to this is that you have to actually stick to the plan (within reason). Know that you are being watched and evaluated heavily...

I also agree with getting personal. This is harder the bigger the team and more vertically integrated the company, but if it's a 10 person team like mine, opening up instantly builds rapport. When it comes to small companies, people don't work for companies, they work for people.

Reply by a professional
from University of New Haven in Cromwell, CT, USA

I agree and add the following:

Team - know what you need for a team - both professional advisors and "team members".

Personal - speak from the heart not the mind - easier said than done!

Planning - hmm the most basic of business traits and needs is often rendered to the back burner - when we need it we can do it.

I like your premise - KISS but ...

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