Working with Others

Image Credit: Smallworldsocial. (January 2014). Small world social teamwork. Retrieved from http://commons.wikimedia.org/wiki/File:Small_World_Social_Teamwork.JPG [CC BY-SA 3.0 (http://creativecommons.org/licenses/by-sa/3.0) or GFDL (http://www.gnu.org/copyleft/fdl.html)], via Wikimedia Commons

Image Credit: Smallworldsocial. (January 2014). Small world social teamwork. Retrieved from http://commons.wikimedia.org/wiki/File:Small_World_Social_Teamwork.JPG [CC BY-SA 3.0 or GFDL (http://www.gnu.org/copyleft/fdl.html)], via Wikimedia Commons

As the buyer prepares for ownership there is a recognition that working with others will be most important.

Customers are often nervous about a change in ownership. The original business relationship with customers, including previous agreements and credits, may potentially change and result in previous customers looking for a new supplier if the new owner changes the products. Suppliers will be watchful as well, as the new owner may have relationships with other suppliers or may want to revise credit terms or prices.

The current owner’s lawyer may also be concerned about losing a client. However, it is possible the new owner will stay with the same lawyer to save the cost of a new lawyer getting up to speed on an existing business, but it’s also possible they may have an existing lawyer they want to stay with.

Staying with the accountant used by the present owner can also save the cost of another financial review.

The decision to retain advisors has the caveat that there is no conflict of interest with the purchaser.

Bankers have intimate knowledge of the business and retaining the firm’s banker could be a wise move.

All in all, the buyer has a variety of outside personnel to work with as well as the employees directly working in the business.

Activity: Working with Others

This activity will help you to define what your role in the business will be, and what steps you can to resolve any shortcomings.

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