Continuing on the business

For the vendor:

When an entrepreneur decides to sell their business, they are also transferring a part of their life to someone else. The numerous efforts and sacrifices over many years, the successes, good deeds and business relations with customers, employees and suppliers are part and parcel of their history and a source of pride. They do have their heart set on ensuring that their business will continue to thrive after they have moved on. The handover must take place complete with all winning conditions. The vendor must work alongside the purchaser throughout the process and maintain a relationship of respect and trust to ensure the continuity of the company. The vendor is quite familiar with their business, which reflects who they are. Ideally, the purchaser has the same values as the vendor. On the other hand, the purchaser may well have a different vision of the future for the business, and the vendor must be open to the fact the purchaser may make changes to put their stamp on it and mould it in their image.

For the purchaser:

When someone decides to go into business and acquire an existing company, they have the financial statements in hand and understand what they are getting into financially. However, other considerations must be taken into account to ensure the sustainability of the company. That is where the vendor has an important role. They know their customers, employees and suppliers. At times, some customers may be a little more demanding but will remain loyal customers nonetheless. A piece of advice on how to deal with these customers may make all the difference in the world. Some employees may be different in how they think but are loyal and take the success of the business to heart to the same extent as the owner. The purchaser has every interest in earning their loyalty. Who is in a better position than the vendor to give advice on this matter? The vendor is letting go a significant part of their life, even though they are intent on seeing the business continue on and prosper. By enlisting the vendor’s support, the purchaser will ensure that they are familiar with all the ins and outs of the business and not have to start from scratch. They will be free to change what they want in the business but will do so with knowledge beforehand.