The human aspects of a business handover

Both sides of the coin

A business handover is much more than a financial transaction between individuals, as it will have repercussions on both the vendor and the purchaser extending beyond the sale of the corporation’s assets.

Aside from the transaction, sale and handover, what does all of this mean not only for the vendor and the purchaser but also for their immediate families, employees, customers, suppliers, and so on?

A handover will result in a change in the lifestyle of the parties involved. Usually, it means retirement for one of them, with everything this entails – habits, agenda, daily schedule, how to fill their days, etc. For the other party, however, it is quite the opposite – they will have to take on far more responsibilities with the same daily concerns (habits, agenda, schedules, etc.).

Lifestyle changes

Someone selling their business will have every interest in tending to the human aspects experienced on a daily basis and the handover of their company. They will be able to demonstrate and describe in actual terms what day-to-day life is like in the business. This includes relations with customers, employees, suppliers, family, etc., but also touches on their responsibilities and what they really are. Once this step has been completed, it will be far easier for a vendor to seek the candidate likely to take over the business, because they will be able to describe it in concrete terms and find a buyer with a profile that will be a perfect match.

For the purchaser, this process will also serve as a guide, as they will have an accurate picture of what it means to become the owner of a business. When a company is sold, the sale extends far beyond the fixed assets and annual sales. The first thing is a lifestyle and everything that entails.

That is why we think that a business handover must take into account human aspects to the same extent and even more so than the financial aspects, if the aim is to have both parties in the transaction achieve success.