Once you reach the closing table, the transaction is not quite done. There is one final step in the transaction process and that’s the training and transition period! Soon following the closing activities, the buyer and seller will present the change in ownership to the management and employees of the company. While this discussion sounds simple enough, it is absolutely integral that the buyer and seller share a clear unified message with the team to encourage buy in and a positive ownership transition.
After closing is also when the seller will begin training the buyer on business management and operations. The length of time that the seller will train the buyer is outlined in the purchase agreement, but is typically two weeks time for a small business. The training period is key to the success of the buyer, because it allows for optimal knowledge transfer and provides time for the new owner to ask questions.
One of the many reasons it is important a business sale remains confidential until closing is so the buyer and seller can control the messaging surrounding the sale, and keep employees, customers, and vendors on board. To learn more about buying or selling a business in Colorado, we invite you to schedule a free broker consultation or visit our website today.
Rachael Holstein has been the Marketing Manager for Transworld - Rocky Mountain since 2016. Her work experience has been largely focused on business development and marketing in business brokerage, finance, architecture, property management, and information technology. A long time resident of Cleveland, Ohio, she attained her undergrad from John Carroll University and her Master’s Degree from Cleveland State University. In 2013, she relocated to Denver with her husband, Joe, and her furry companions to explore the mile high lifestyle!