HOW TO SUCCESSFULLY COMPLETE THE TRANSITION FROM SELLER TO BUYER
Transition of a business and practice can prove to be of great success when it is handled with reasonable care. Some of the key points for a successful business transition are:
1. Long transition and exit period is a challenge: This is probably the biggest misconception. Long-term seller involvement hinders the buyer’s communication and ability to get accustomed and develop a bond with clients. Transition strategy should be formulated so that seller is clear about his exit and communicates his faith in the buyer to the client.
2. Have a transition plan ready: Having a clear plan of action is incredibly helpful. No matter what time of year you buy or sell a practice or any business, the first month or so will always be busy. Develop a plan where staff is involved, client announcements and meetings are scheduled, as well as operational issues are taken care of. There is a lot to do and maintaining a good perspective of what should take priority after closing the deal is the key
3. Clear, honest communication is essential: Be it practice or business, it is a relationship business and the buyer needs to start the relationship on the right foot. We always recommend clear communication between the buyer and seller where the seller is clear about his/her future role in the practice and business. When a transition is portrayed as a merger or new partnership when in fact it is an outright purchase, then that can leave a very bad impression on clients.
4. Staff can be nervous about change in ownership: They need reassurances and empathy regarding will they have a job or change in the pay and working hours. Clear answers and time spent with the new owners will help the employees mitigate these concerns. Keep in mind how important staff and workflow are to the success of the business.
5. Fit is everything: The buyer and seller should be a good match. If the buyer and seller do not get along the other four concepts won’t make difference. No two people will operate a practice or business in the same fashion. However, if you are selling your practice or business, you need to be certain that the buyer you have chosen will be well liked and respected by your clients and staff.
Succession Planning Guide for practicing professionals
Succession Planning Guide for business
Start creating your succession plan using the simple strategies mentioned in this guide.