Four Key Steps to Ensure a Smooth Transition of Ownership
When there is a transition of ownership, follow these four steps to make it as smooth as possible.
There is no one-size-fits-all guide to managing the transition after an acquisition. When a searcher acquires a company, they should focus on these four key areas: communication, education, evaluation, and governance.
Communication: The first order of business is to establish open and clear lines of communication with the management team and employees. It is critical that the new principal(s) take time to listen and learn about the business from those who know it best.
Education: The new principal(s) must educate themselves on all aspects of the business, including its products or services, customers, suppliers, competitive landscape, industry trends, etc. This information will be critical in developing a roadmap for moving forward.
Evaluation: The new principal(s) should take time to assess the current state of the business, including its financial health, operational efficiency, competitive position, etc. This information will be critical in developing a roadmap for moving forward.
Governance: The new principal(s) must put in place the right organizational structure and systems to ensure the business is run effectively and efficiently. This may include formalizing (or updating) job descriptions, developing policies and procedures, implementing new accounting/financial controls, etc.