Chapter 13 - What to Expect Post Sale
Once the deal is closed, there is a sense of relief more than anything. The last couple of weeks can be intense as all the details come together and everyone just needs a break. However, this is where the next phase begins as announcements need to be made to the staff, banking relationships changed, customers are informed, and a new management structure is potentially implemented, to name a few. Telling the Staff - This can be one of the more nerve-racking steps in the process. There should be a good plan for what the messaging is going to be and a decision about whether the Buyer is going to be there. Often it is best to announce that an investor has become involved as the expectation is that the company will be growing. This puts everyone at ease as the leadership they are accustomed to is not leaving at least at that point. Key staff will often have bonuses related to the acquisition and usually, these should be discussed with them separately. Transferring Bank Authority - The Buyer needs to take control of the bank and credit facilities, but this can take quite some time (sometimes months). Unfortunately, this step can generally not be taken until the day after closing (in case the deal does not close). Due to this, it is important to make a plan with the Seller to make sure that payments and bank transactions are continued until the transfer. Often this can
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