For many business owners, choosing a successor is not just about the purchase price. Rather, they are interested in ensuring that the business they have painstakingly built up is carefully managed going forward and that the workforce does not have to worry about losing their jobs.
The search for the right buyer can easily take one or more years. Negotiations should be conducted as discreetly as possible. After all, a planned change in company leadership generally causes unrest among employees and can significantly disrupt business operations, as there are numerous possible scenarios to consider when handing over a business.
Once negotiations have been successfully concluded, the workforce should be informed promptly—ideally before they learn of the sale from the press. The German Civil Code (Section 613a) also stipulates that the previous employer or the new owner must inform employees in writing of the timing, reason, and the legal, economic, and social consequences of the transfer for the employees, as well as the measures planned with regard to the employees.
After the Business Transfer: Provide Clear Information, but Don’t Turn Everything Upside Down Right Away
To reinforce confidence in his successor, the outgoing business owner should ideally introduce him to the employees in person. To ensure the transition goes as smoothly as possible, he may choose to serve as a behind-the-scenes advisor for a while. However, as a respected leader, the new boss must prove himself on his own.
This requires not only professional expertise but also interpersonal skills. It is difficult to lead and further develop a company if the workforce does not support you. Therefore, he should inform the team about his goals and his approach as soon as possible so that employees know what to expect. If the (possibly new) direction is communicated transparently and well-reasoned, it will be easier to implement. Employees will then be more willing to pull together with him.
It’s not advisable to rush into too many changes in the first few days. If the new owner completely overhauls existing work processes right away without any communication, this can quickly be interpreted as criticism of past performance. Demotivation or even resistance from employees is inevitable.
Integration Process: Leveraging Employees’ Expertise
To win over the team, the new boss should instead show appreciation and interest in them. A good leader makes an effort to understand processes, get to know their employees and their tasks, and asks for suggestions for improvement. Or, in other words: They draw on the expertise of those who know the company best, while at the same time conveying to them that their opinions and contributions are valued. Few things are more motivating.
