Communicating the Sale of Your Education Business: When and How to Inform Your Staff
As an education business owner preparing to sell your company, one of the most critical decisions you'll need to make is when and how to inform your staff about the sale. This can be a sensitive issue, as it directly impacts the lives of your employees, including teachers, assistants, seasonal staff, and full-time employees. In this blog post, we will discuss the best approach to take when communicating the sale of your education business to your team.
Timing is Key
In most cases, staff should be informed about the sale a few days before the deal is completed, or even just afterwards. This approach allows the business to be run as usual, as if there were no imminent sale, in case the deal falls through. It's crucial to maintain a sense of stability and continuity for your employees during this period.
Involving Key Staff Early
It may be necessary to involve key staff members earlier in the process, particularly if the buyer will rely on and work with them from day one after completion. These key employees can play a significant role in making the buyer feel comfortable with the management team they'll be taking on, which can impact the business's future sustainability and valuation.
Informing Staff When There's a Tangible Buyer and Plan
It's generally best to inform your staff when there's a solid buyer and plan in place, rather than telling them that you're putting the business on the market for sale. This approach helps to minimise uncertainty during the selling process, which can take several months.
Preparing a Standard Response
It's essential to have a prepared response in case an employee asks if the business is for sale, given the possibility of visits from potential buyers or unusual requests for information from your accounts department. While you should always advertise the sale of your business anonymously, it's possible that someone who knows the company might guess its identity.
Focusing on Investment and Growth
When discussing the sale with your employees, it's helpful to frame it as seeking investment to take the business to the next level. This perspective is accurate, as the sale involves finding a buyer who will invest time and money into building the business's future. It's also less emotive than saying the business is for sale outright. For owners approaching retirement age, discussing succession planning can be a more understandable reason for staff members concerned about their future employment.
Final thoughts
In conclusion, communicating the sale of your education business to your staff requires careful planning and consideration. By following the guidelines outlined in this blog post, you can ensure a smooth transition for your employees, maintaining a stable and positive work environment. Remember that being transparent and supportive during this process will go a long way in helping your staff feel secure and valued, paving the way for a successful sale and future growth under new ownership.
