How to Ensure a Smooth Handover When Buying a Business

When buying a business, the handover process is one of the most critical stages so it requires a lot of presiding over and planning in advance.

Whether you’re acquiring a local retail shop or a multi-site company, a smooth handover is essential to minimise your risk, make sure customers aren’t adversely affected, and to help you hit the ground running.

Here we outline the steps that you need to consider to ensure a smooth handover when buying a business.

Agree a plan with the seller

The business and all decisions related to it belongs to the seller until completion, so you have to work collaboratively. Plan the timeline for each phase of the handover and what will happen during each phase. Outline your responsibilities and what the seller will be responsible for as the handover progresses.

The key components usually include:

• Handover dates: When will you take official control? Whilst agreed between seller and buyer the exact date can also be influenced by solicitor and accountant availability, so consult with all who are involved in the deal.
• Training: The more complex the business and the larger the business the more time you will likely need to spend with the previous owner and all relevant teams to ensure that you know the systems, the operation, and all key pieces of information inside out. Detail exactly what you need to cover and when training on each element will take place
• Employee introductions: If the business has employees, it’s important to consider when the right time to inform them will be and agree on that with the seller. In some cases it’s best to notify all employees as early as possible and introduce yourself. In other cases it may be prudent to only inform senior management and other key staff until the handover is complete
• Suppliers and customers: Usually notifying suppliers and customers of the change in ownership well in advance is the way to go. It’s important to reassure them that business will continue as usual and aim to maintain existing relationships during and after the handover. In some cases though you may decide to wait until after the handover – for example if the seller is going to continue working for the business in some capacity or if other circumstances make this the smart play. This is an important consideration which should form a major part of the plan

A detailed plan helps keep both parties aligned and can serve as a reference point throughout the process. Be sure to document everything.

Communicate clearly and consistently

Before, during and sometimes post-handover it’s vital to maintain transparent and consistent communication with the seller. The handover will play a pivotal role in your initial success so it’s important to avoid unnecessary issues through miscommunication.

This is particularly important if the plan is for the seller to remain involved in the business for a period of time post-sale.

Create contingencies

Even with a solid plan in place, it’s important to prepare for unforeseen circumstances. These could involve supplier issues, losing key customers during the process, losing key employees, issues with the premises, or other operational challenges.

Consider what could potentially go wrong and put contingency plans in place so that you can react to any situation positively and swiftly should anything happen.

How Business Partnership can help

Buying a business is an exciting yet complex journey, and the handover is a pivotal moment in that process.

With a network of business brokers covering the UK, we specialise in guiding buyers through the entire acquisition process.

Contact us today to discuss how we can help you. There’s never any obligation to work with us and discussions are always confidential.