Issue link: http://psai.uberflip.com/i/1299190
ASSOCIATIONINSIGHT Portable Sanitation Association International News BIWEEKLY EDITION OCTOBER 14, 2020 Page 3 When a Portable Sanitation Company Sells…continued from page 1 Continued on page 4 What has been shared in this process is both positive and negative. Because we wanted to bring you the truth, we endeavored to create an interview atmosphere where people could talk freely. That required assuring those involved that the names of the employees, their companies, and their managers/owners would be omitted from the article. The interviewees are real people who are engaged in the portable sanitation industry. They are known to the PSAI, and these are their stories. It All Begins at the Closing Table At the moment a proprietor, partners, or an ownership group meets in an attorney's office to complete the legal sale of a portable sanitation company to another party, the employees are experiencing "just another day" at work. Their jobs, salary, benefits, and seniority are seemingly not at risk. The people involved in the transaction have probably been engaged for months at this point, and they've had time to adjust to the idea that things will be shifting to a new owner's control. The employees have not. Once the sale is announced, everything changes. At this point there are many scenarios that can occur as employees adjust to the new reality. Some are positive, and some are not. The following case studies illustrate both the favorable and the unfavorable consequences that can occur when there's been a sale of the company. Company Sale Number One Initial scenario: An individual with several other related businesses desired to purchase a portable restroom company to expand their product offerings. The company that was to be purchased was well-branded and had a great reputation for outstanding customer service in their market. The seller agreed to remain with the new company on a limited basis for six to eight months to assist with the transition of the business and the employees. The portable restroom company had several employees with well over 10 years of experience and everyone worked well as a team. Circumstances at hand-off: The new owner merely considered the purchase of the portable restroom company to be an addition to his other business units. He expected the new product line would be managed and operated just like the dumpster, recycling, and other businesses already in his portfolio. The former owner, after several meetings and heated conversations with the new owner, left after several weeks. Within six weeks of the former owner's departure, roughly 90 percent of the experienced employees quit. Analysis: The former owner took an interest in the well-being of his former employees and acted as a "shield" to help in the transition. When the former owner departed shortly after the sale was final, the employees were left to experience the new owner's style and decisions without their trusted filter. Shortly thereafter, most of the employees also left. Hence the new owner ultimately paid a price in that new, inexperienced employees had to be hired and trained. Customer satisfaction diminished and the new owner had to rebuild trust with the company's customers and employees.