Buying a Small Business in the UK - A Quick Reference Guide

be as easy as the Seller giving the Buyer their electronic banking login details in the interim. Informing Customers - The process for this will vary from company to company and between different customers. The guiding principle here is to use common sense and not take any steps that might cause customers to seek to do business elsewhere. Again, the investor versus business sale angle can be used, the Seller can inform the customers personally or a general announcement can be sent out. Again, the guiding principle should be what will instil customer confidence. A Modified Management Structure - This will generally be implemented in some form. It is important to get the buy-in from key people, document any changes and be clear on any new reporting requirements. The rule of thumb is to take this slowly to allow people to adjust and develop a positive attitude about the acquisition.

The Hand Over

Often the Seller will have an active role in the business during a transition period. The goals and plan for the transition period should be well documented during the post-sale planning phase in parallel with the due diligence process. The handover process can take many forms depending on the company but the goal should be continuity and the least disruption possible, particularly around customer service. Many owners will take a more focused role after the handover, the most common being some business development responsibility for the major accounts they have relationships with. This allows the owner to stay involved and make a tangible contribution to the company as long as they are willing.

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