Selling a business what’s the protocol?

dubsfan

Hi guys

I work in a relatively small business. I’m getting the impression the owners, our managers are getting ready to sell up. There’s been a lot of comings and goings the past 3 week with two guys turning up every day and in the boardroom. Files seem to be coming and out. The owners/‘managers haven’t been with them but have given them full access to everything by the looks of things. Not sure if these two guys could be potential buyers or maybe are accountants. The owners/managers have had 2 meetings in past 3 weeks so there’s definitely something going on. Another option could be maybe one of them is selling their share.
anyone been in a similar situation?

Simplified answer, the owners decide on a value they will accept, the buyer does their due diligence to see if all is in order and the business is worth what they are offering, and a price is negotiated.

The employees will be covered by TUPE legislation, then it depends on whether the buyer wants the company to continue to operate as is, wants to fold it into a larger organisation, or wants to shut it down and take only the clients/intellectual property/patents.

As an employee, you just have to wait and see, but if you think it is bad news, then it’s either wait and see what redundancy payment you get, or polish up your CV.

blackbox

Maybe those guys are from the fraud squad!

Oscar_Madison

Could it be a revenue audit? Might the company be in financial trouble and this is the start of the wind down? Too little information to really say what’s going on

https://www.boards.ie/discussion/comment/122498323#Comment_122498323

They would likely have their own accountants there also if it was an audit.

dubsfan

they possibly could be struggling I never actually thought of that. How long generally would an audit take? As I mentioned above the guys that have been coming in have been

Here from say 9 to close of business 4 days each week this is the third week they are here

dubsfan

would you be offered redundancy if new owners were willing to keep you on?

dubsfan

https://www.boards.ie/discussion/comment/122498597#Comment_122498597

I was asking in response to another poster who said to see what redundancy package we’d be offered

https://www.boards.ie/discussion/comment/122498579#Comment_122498579

When an existing business is bought, TUPE regulations apply so any service/terms of employment you have under your existing employer carry over to the new owner. If they want to make your role redundant, they will let you go and you will have redundancy entitlements depending on your length of service/whether you qualify. If they decide to keep you on and you decide to leave, well in that case you just move on to the next job.

Oscar_Madison

https://www.boards.ie/discussion/comment/122498571#Comment_122498571

You’re obviously not privy to what’s going on but asking an innocent “is the company in trouble?” question to someone who does, might get to the truth- company owners hate the rumour mill so that might prompt them to issue some sort of “statement” to all staff - just don’t necessarily expect the full truth if there is something amiss - but you might be able to read between the lines

POBox19

Sounds like the annual audit.

dave3t

It sounds like you're in a pretty interesting situation, and it’s understandable to feel a bit concerned about what might be happening. Here are a few thoughts based on similar experiences:

1. Observe the Signs: You’re already noticing key indicators, like frequent visits from outsiders and the owners being less involved. These could suggest they’re preparing for a sale or transition.
2. Communicate: If you feel comfortable, consider asking your managers directly about the changes. They might appreciate your interest and may provide some clarity.
3. Prepare for Change: If a sale is indeed in the works, think about how it might affect you and your role in the company. Stay adaptable and be ready for potential shifts in the workplace.
4. Confidentiality: Keep in mind that discussions around selling a business can often be confidential. This may explain why there’s limited communication about what’s happening.
5. Talk to Colleagues: If you have trusted coworkers, discussing your observations with them might provide additional insights or reassurance.

Many people have found themselves in similar situations, and often the best course is to stay informed and prepared for whatever changes may come.

dave3t

It sounds like you’re in a situation that many have faced when working in a small business. Here are some insights to consider:

1. Observe the Signs: You’ve picked up on key indicators, like the frequent visits from outsiders and the owners’ reduced involvement. These could indeed suggest they are preparing for a sale or transition.
2. Communicate: If you feel comfortable, it might be worth asking your managers about the changes. They could appreciate your interest and may be willing to share more information.
3. Prepare for Change: If a sale is happening, consider how it might impact your role and the company culture. Staying adaptable and open to changes will be beneficial.
4. Confidentiality: Discussions around selling a business are often kept confidential. This could explain why there hasn’t been much communication about what’s going on.
5. Talk to Colleagues: Discussing your observations with trusted coworkers can provide different perspectives and perhaps some reassurance.

Ultimately, it’s common to feel uncertain in such situations, but staying informed and prepared will help you navigate any potential changes.