By Dr. John Psarouthakis, Executive Editor of www.BusinessThinker.com, Founder and former CEO, JP Industries, Inc., a Fortune 500 industrial corporation
This is the 16th and last of a Series of short articles on “HOW TO BUY THE RIGHT COMPANY” that have been posted herein.
Once you close the deal, you need to be prepared to go in the very next morning to meet with your management team as well as your entire staff.
What you do in the first days and weeks will set the tone for your relationship with your employees for some time to come, possibly even the duration of your ownership.
Remember that the chief concerns of your employees and managers may be somewhat different than your own agenda. Employees will be concerned, first and foremost about their own job security and future with the company now that it is under new ownership.
Management shares this concern, and may also have more narrow issues facing them in their own departments, that nevertheless they may feel requires immediate attention.
An easy model to follow includes a short initial introductory meeting with management, an all-employee meeting to include all management and non-management staff, and then a third more formal meeting with management.
These meetings will set in motion the planning to carry out the three objectives of the transition: addressing your key constituencies (employees, customers, suppliers and bankers), revision of the action plan, and implementation of significant changes outlined in the plan.
Other meetings will follow in the first days and weeks, but it is essential to try to fit these first three meetings into the first day if at all possible.
As a new owner, you must be careful to listen carefully, building trust and goodwill with your new employees.