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ASSOCIATIONINSIGHT Portable Sanitation Association International News BIWEEKLY EDITION OCTOBER 14, 2020 Page 10 When a Portable Sanitation Company Sells…continued from page 4 Continued on page 11 Company Sale Number Four Initial scenario: A small local company was sold to a larger entity with an expanded service area. The selling process occurred over a one-year period. During this time, all the employees were guaranteed their positions unless they violated company policy or public laws, and employees were aware the sale was in process. In addition, during this one-year period, the selling owner paid bonuses to employees for outstanding performance and for continued time worked. Circumstances at hand off: Employees were sufficiently comfortable with the evolving changes during the yearlong transition that little notice was given to the official hand-off. After three years, most of the employees of the former company were still employed at the new company. Analysis: By including and involving the employees as part of the sale, the new company did not have to hire a new team. Customer service was not affected, and customer relationships were maintained. In short, almost everyone won. Considerations While these four scenarios are important, they are but a small sampling of transactions that have occurred in our industry throughout the years. Likely there have been additional experiences that are not covered here. The common thread in both those that are known, and those that are unknown, is that it is potentially devastating personally and financially to mishandle employee communication and continuity before, during, and after a sale. To be sure, buying or selling a business is a monumental event for the owners. The intangible value of the staff team and the impact of the sale on these employees' lives is an essential consideration in a successful hand-off. The scenarios discussed in this article have shown both positive and negative consequences for the seller and the buyer, depending upon how skillfully they communicated and carried out the transition between owners. As you explore the possible sale of your company, several factors should be considered concerning the employees. If you are an employee whose company is being sold, you might find these areas to be helpful in thinking about your future and what questions to ask during the transition process. • Will employees be protected in the sales agreement? As we have seen in the above scenarios, a trained and experienced team of employees can definitely aid in a smoother transition. • What will the status of company policies be after the sale? If one company sells to an existing company, will there be a combination of "best practices" from both companies? If an individual is purchasing an existing company, will the policies and procedures stay the same? If a company sells to a larger, regional, or national company, should the buyer's policies and procedures be reviewed by the seller before the sale to see how the employees will be affected after the sale? Whether you are a buyer or a seller, these are important issues to consider. They matter to employees and to employee retention. Employee retention and satisfaction, ultimately, affects the value of the firm overall.