It is important to ensure that key employees are kept happy. Otherwise, if the potential purchaser realises that he may lose a large part of the workforce following completion, he may be reluctant to go ahead with the acquisition. Employees may feel mistreated if they do not feel involved in the process or do not receive part of the sale proceeds. Conversely, if they receive a windfall payment they might feel there is no longer any reason to stay. At the same time, employees may resist and resent any change in strategy brought about by the involvement of a new investor and may be anxious about their own future. It will be necessary to work with the potential purchaser to avoid this situation, impressing on the employees any benefits of the acquisition which there could be, such as increased benefits and job security.
A sale can also affect relationships with customers and suppliers. In some cases, contracts - such as supply contracts - may include clauses which allow the contract to be terminated in the event of a change of control. The purchaser may wish to talk to customers and suppliers prior to completion to reassure himself that they will remain with the company. This will often weaken your position as a seller, particularly if the sale does not go ahead, causing damage to your credibility.
Any withdrawal of capital from the business must be carefully analysed. Leaving the business undercapitalised could be disastrous.
If you are retiring as part of the sale, succession planning is crucial. You will need to find and groom a successor, and then step back. You will also need to ensure that business relationships which were based on personal relationships with you can be maintained.
