Quote:
Originally Posted by Steveo
All I am saying is, if I was going to buy a business I would certainly want to know, even if it is a best guess as to what will happen with the employees and customers. You are not going to go into it blind. I new owner will not "take the word" of the old owner that all his customers will stay. As the new owner I would want to reach out to my customers to find out what they like or don't like and to assure them that things will not change or will get better, simply to gauge how many will stay. If someone has to sell because they are in financial trouble then I don't think the customer is going to worry that new blood and money are coming in to fix things up. In almost all cases customers don't leave upon news of selling, they will wait to see what the new organization will bring.
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Unfortunately Steve, there are no guarantee's in life. The old owner would be foolish to promise his customers would stay as he has no control over the customers or what the new owner will do. Advertising the sale of a business like this could spook many customers causing problems for sales and service alike. People don't like change, especially change they have little control over. I would think once a confidentiality agreement is signed the old owner would open all his records to the prospective buyer. Then it is up the buyer to determine whether the risks are worth it or not. Employees generally want to be treated fairly and whether they stay or not is usually up to how the new owner treats them.
All that being said, this method for selling a business is pretty common place.