Wednesday, December 21, 2011

Can Family Members Continue as Employees Post-Sale?

Family businesses form a large segment of the small business sector. Transitions can often be difficult when new ownership takes over. OED Certified Advisor Laurie Russelberg provides great insight into the concern of the transition on family members who seek to remain with a company.

Q. Our nephews each work for us, along with our kids. Is it true they’ll be looked at as “old wood” by new ownership? How do we ensure buyers know they are critical, not just family pulling paychecks?

A. This is central concern for family businesses considering a sale. Depending upon the situation and buyer, some or all positions may be in jeopardy. Is the potential buyer an existing business that has its own workforce? Or is the potential buyer an individual who will need to depend upon the current workforce?

Each situation is unique, but the best protection for future employment is to ensure the new buyer sees the family members as vital, contributing members of the company. A few suggestions to consider:

Ensure that each family member has a detailed job description. Can business performance be linked back to each employee and their respective job descriptions?

Can this be effectively communicated to the potential buyer? Don’t be shy about promoting the family members as vital to the wellbeing of the company.

After a sale, will the family members be able to adjust to the new ownership and a changed work environment?

Laurie Russelburg is an OED Certified Advisor and founder of Bridge Business Consultants, Orlando, FL. Contact Laurie via LinkedIn to help your business grow, prosper and transition.

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